KUALA LUMPUR: The ringgit will “eventually” strengthen to 3.00 against the greenback after adjustments in the US dollar are made, said Malaysian Institute of Economic Research (MIER) executive director Datuk Dr Mohamed Ariff Abdul Kareem.
“It may take a couple of years before we get there,” he said at the sidelines of MIER’s 22nd national economic briefing yesterday, adding that the US dollar was currently overvalued by at least 20%.
Ariff expects the ringgit to trade at between 3.30 and 3.35 against the greenback by year-end in line with the country’s sound economic fundamentals and the weakening US dollar.
He also said the appreciating ringgit did not hurt exporters in the country, given that they were able to adjust to the ringgit's gains, which was in tandem with the appreciation of other major currencies in the region.
On whether the ringgit would be traded offshore, Ariff said: “I don’t think Bank Negara will allow the local currency to trade internationally in the near term”.
“Once you open up, you are giving more vent to speculative activity,” he said.
Deputy Finance Minister Datuk Dr Ng Yen Yen, in a speech delivered by Finance Ministry deputy secretary-general Ibrahim Mahaludin Puteh at the briefing, said the Government did not have a target level for the ringgit.
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