Skip to main content

Ringgit weakness to deter policy loosening in Malaysia

The Malaysian ringgit has been Emerging Asia’s worst-performing major currency over the pastyear. While a weak ringgit should bolster Malaysia’s exports, it also poses a threat to financialstability. The danger of further depreciation is one reason why we think the central bank isunlikely to cut rates even if, as we expect, the economy soon starts to slow.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.