The Nikkei reports an interesting excerpt from an interview with former Malaysian Prime Minister Mahathir Mohamad. The former prime minister saw the Malaysian ringgit’s peg to the US dollar collapse during the Asian financial crisis in the late 1990s.
He is optimistic that such an event could not happen again:
- The depth of modern money markets means a repeat of the 1997 Asian financial crisis is less likely
“When there are a lot of people competing in currency trading, it’s a bit difficult to play with value,” he said in an interview with Nikkei Asia to mark the anniversary of the crisis. . “You might want to lower the value, but other people want to raise the value, so they cancel each other out.”
Here is the link to find out more.
All is not rosy, Mahathir highlights Sri Lanka’s current woes in the interview.
The king US dollar weighs on many DM currencies: