Mahathir Says Ringgit Fair Value Is Same as Asia-Crisis Peg
- PM favors 3.8 per dollar, though gains should come ‘naturally’
- Currency trades near 5-month low amid emerging-market strains
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Malaysian Prime Minister Mahathir Mohamad said the ringgit’s fair value now is the same as the peg his previous government established in 1998 during the Asian financial crisis.
Asked in an interview Friday what he saw as fair value for the currency, Mahathir said “3.8.” That’s more than 5 percent stronger than its current level against the dollar, and a rate it hasn’t traded at since mid-2015, when turmoil in Chinese financial markets hit developing-nation assets. The currency strengthened 0.3 percent Friday after his remarks were published.