2. Is this foreign exchange control to prevent excessive and unnecessary foreign currency inflow and excessive and unnecessary local currency exchange outflow? Excessive inflow and outflow of foreign currency will cause hot money? Will it also cause inflation? (except foreign trade).
Characteristics of foreign exchange control in Malaysia;
I. Financial environment in Malaysia
1997 the Asian financial crisis hit Malaysia's financial system hard. September 2 1998 The Malaysian government implements a fixed exchange rate system and strictly controls foreign exchange outflows. With the improvement of economic situation, on July 2, 2005, the Malaysian government implemented a managed floating exchange rate system, which greatly relaxed foreign exchange control measures and created a good environment for foreign investment.
(1) local currency
The currency of Malaysia is the Malaysian ringgit (also known as ringgit or ringgit Malaysia). Foreign businessmen can exchange Malaysian ringgit in banks and currency exchange offices, and all banks in Malaysia can cash traveler's checks. At present, Malaysian ringgit is not allowed to be freely exchanged overseas. Commercial banks in China have never dealt in Malaysian currency.
RMB and Malaysian ringgit cannot be directly exchanged. RMB and Malaysian ringgit need to be bridged by US dollars. 20 10 From August 9th, China State Administration of Foreign Exchange began to announce the central parity of RMB against RM. Indirect pricing of RMB against RM. 2065438+On May 8, 2007, China State Administration of Foreign Exchange announced that the exchange rate of RMB against Malaysian ringgit was 100:62.887.
During the period of 1997, the financial turmoil swept across Asia, and the Malaysian ringgit plunged by 46% in six months. In July, 1 reached a historical low of 4.885. In response to the devaluation of the Malaysian ringgit, on September T of that year, the Malaysian government announced that it would peg the Malaysian ringgit to the US dollar, and fixed the exchange rate between them at the level of 1 US dollar to 3.8 Malaysian ringgit until July 2, 2005, when the control was released and the Malaysian ringgit was allowed to float.
Since July 2005, the Malaysian ringgit has risen steadily against the US dollar. In March 2008, it once rose to 3. 1: 1, and then the shock was slightly adjusted. In 2006, 1 USD was about RM 3.52 on February 29th, 2007, RM 3.3 1 RM on February 30th, 2007 and RM 3.5 1 RM on June 20th, 2008. In recent years, the exchange rate of Malaysian ringgit against the US dollar has fluctuated again. 20 14 Since the fourth quarter, Malaysian ringgit has led the decline in Asian emerging market currencies. The exchange rate of Malaysian ringgit against the US dollar has successively fallen below the psychological barriers of 3.8 and 4.0, and even once exceeded 4.4. In 20 16, the Malaysian ringgit depreciated by more than 4.3% against the US dollar. 2065438+May 8, 2007, one dollar was about 4.3335 yuan.