Tuesday, June 17, 2003
Malaysia asks firms to build up euro revenues
Reuters Kuala Lumpur, June 17
Malaysia will continue to peg its ringgit currency against the US dollar, but the government has asked firms and government agencies to build up revenue streams in euros, Second Finance Minister Jamaludin Jarjis said on Tuesday.
"It's just being prudent... to mitigate risk," Jamaludin said, explaining the call for more earnings in euros.
The euro has gained nearly 14 per cent against the dollar since the start of the year.
But Jamaludin said the ringgit peg will stay. "Yes. The US is still our largest trading partner. It is important that we continue to have it (the ringgit) benchmarked to the dollar," he told a news conference.
The ringgit was fixed at 3.8 per dollar in late 1998 to protect Malaysia from the worst ravages of the currency crisis. Capital controls were also introduced, but they have largely been rolled back.
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