Malaysia Currency - A Comprehensive Guide to the Ringgit

The Malaysian Ringgit, or MYR, is the official currency of Malaysia. It's widely accepted and used throughout the country.

The Ringgit is divided into 100 sen, the smallest unit of Malaysian currency. You'll see both Ringgit and sen used on price tags and in transactions.

In Malaysia, you can exchange your currency for Ringgit at banks, currency exchange offices, or airports. This is a good option if you're not sure about the local ATMs or credit card acceptance.

The Ringgit is available in various denominations, including notes and coins. You'll see notes ranging from 1 Ringgit to 100 Ringgit, and coins in 1, 5, 10, 20, and 50 sen.

The Malaysian Ringgit has a rich history, with significant changes occurring over the years. The currency was introduced in November 1967, leading to the devaluation of the Pound and the eventual dissolution of the sterling area in 1972.

The Interchangeability Agreement, which initially allowed the Malaysian dollar to be exchanged at par with the Singapore dollar and Brunei dollar, ceased on 8 May 1973, as Malaysia withdrew from the agreement. This marked a significant shift in the country's monetary policy.

The currency symbol 'RM' (Ringgit Malaysia) was introduced in 1993, replacing the conventional use of the dollar sign '$' (or 'M$').

The ringgit was trading freely at around 2.50 to the US dollar between 1995 and 1997.

This changed abruptly in 1997 with the onset of the Asian financial crisis, which led to a major dip in the ringgit's value to under 3.80 MYR/USD by the end of the year.

The Central Bank of Malaysia responded by pegging the ringgit to the US dollar in September 1998, maintaining its value at 3.80 MYR/USD while still allowing it to float against other currencies.

In 1998, the ringgit was also designated non-tradeable outside of Malaysia to stem the flow of money out of the country.

The printing of RM500 and RM1,000 notes had stopped in 1996 due to concerns about money laundering and capital flight, but the financial crisis led to their demonetization in July 1999.

This meant that these notes were no longer considered legal tender and were only exchangeable directly at the central bank.

At the time of demonetization, RM500 and RM1,000 notes were worth approximately US$130 and US$260, respectively, based on the 3.80 MYR/USD peg rate.

Despite these measures, some RM500 and RM1,000 notes remain in circulation to this day, with around 7.6% and 0.6% of these notes still in circulation, respectively.

As of 2011, a total of 150,599 and 26,018 pieces of RM500 and RM1,000 notes, worth RM75,299,500 and RM26,018,000, respectively, had not been recalled through the central bank.

The ringgit's value against the US dollar dropped by 50% between 1997 and 1998, and it continued to depreciate against other currencies until 2005.

In fact, by 2008, the ringgit had still not regained its value against the Singapore dollar, euro, Australian dollar, and British pound, which it had lost between 2001 and 2005.

The Malaysian ringgit has undergone significant changes since its introduction in 1975. The currency was pegged to the Singapore dollar at a rate of 1:1, but in 1997, the government allowed the ringgit to float freely.

In the early 1990s, the ringgit was valued at around 2.6 to 3.5 per US dollar. By 2000, the rate had risen to 3.8, where it remained for several years.

Here's a breakdown of the historical exchange rates for the Malaysian ringgit against various currencies:

Note the significant fluctuations in the value of the ringgit over the years, particularly against the US dollar.

The Malaysian ringgit (MYR) is the country's official currency, divided into 100 sen. It's been in circulation since 12 June 1967, when it replaced the Malaya and British Borneo dollar.

The MYR is issued by the Central Bank of Malaysia, which oversees its issuance, regulation, and circulation. The bank's logo is featured on the currency.

The currency symbol 'RM' (Ringgit Malaysia) was introduced in 1993, replacing the conventional use of the dollar sign '$' (or 'M$'). This change marked a significant alteration in the country's currency.

In Malaysia, a rounding mechanism was introduced on April 1st, 2008, to render the 1 sen coin irrelevant. This means that prices are rounded to the nearest 5 sen, applied to the total bill only.

Existing 1 sen coins in circulation remain legal tender for payments up to RM2.00. This is a practical consideration for vendors and customers alike.

The 20 sen and 50 sen coins look similar to €0.10 and €0.20 coins in size, edge design, and colour, but they are only worth €0.047 and €0.12 respectively. This is an interesting observation, especially for those familiar with European currency.

Here's a breakdown of the third series of Malaysian coins:

The Malaysian ringgit is a fascinating currency, and its banknotes are a great reflection of the country's rich history and culture. The largest legal tender banknote in the world is the 600 ringgit note, measuring 370mm by 220mm.

The Malaysian ringgit is divided into 100 sen, and the Bank Negara Malaysia oversees the issuance, regulation, and circulation of the currency. The ringgit has undergone several changes since its introduction in 1967, including the introduction of the M$1 coin in 1967 and the discontinuation of RM500 and RM1,000 notes in 1996.

One of the unique features of Malaysian banknotes is the use of polymer and paper substrate, which is evident in the 60 ringgit and 600 ringgit notes. The 60 ringgit note, for instance, features a royal throne encircled by the portraits of 15 Yang di-Pertuan Agong, while the 600 ringgit note features a similar design but with a larger size.

The Malaysian ringgit has a long history, and its banknotes reflect this. The 50 ringgit note, for example, was first introduced in 1998 and features a polymer substrate. There have been several variations of this note, including one with a yellow border at both sides, which was issued in 2007.

Here's a summary of some of the key features of Malaysian banknotes: