In this article, We learn about “The Malaysian Ringgit (MYR)”.Let’s Go!
The Malaysian Ringgit (MYR) is the official currency of the Southeast Asian country of Malaysia.
The ringgit was introduced in 1967, replacing the Malayan dollar and the British Borneo dollar.
Bank Negara Malaysia is the country’s central bank and is responsible for issuing and managing the Malaysian Ringgit.
Exchange rate system
The Malaysian Ringgit operates on a managed floating exchange rate system, which means that its value relative to other currencies may fluctuate based on supply and demand in the foreign exchange market.
Bank Negara Malaysia may intervene in the market to manage exchange rates and maintain stability, particularly with respect to the currencies of major trading partners such as the US dollar and the euro, as well as the currencies of neighboring countries.
Segments and denominations
The Malaysian Ringgit is subdivided into 100 smaller units called “sen”.
Coins are available in denominations of 5, 10, 20 and 50 sen, as well as RM1.
The banknotes are available in denominations of RM1, 5, 10, 20, 50 and 100.
Economy
Malaysia’s economy is diversified and export-oriented, with strong manufacturing, services and agricultural sectors.
Main industries include electronics, petroleum, palm oil, rubber and tourism.
The country has successfully transformed from an economy dependent on agriculture and commodities to one dominated by manufacturing and services, which has contributed to higher income levels and economic growth.
Malaysia is also an important oil and gas exporter, which contributes to its foreign exchange reserves and fiscal revenue.
However, the country is working to reduce its dependence on these resources and further diversify its economy.
Summary
To summarize, the Ringgit Malaysia is the official currency of Malaysia and its management is the responsibility of Bank Negara Malaysia.
The currency operates on a managed floating exchange rate system, is subdivided into sen, and is issued in coins and banknotes of various denominations.
Malaysia’s economy is diversified and export-oriented, with strong manufacturing, services and agricultural sectors, and is working to reduce its dependence on oil and gas resources.
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