Ringgit
From Freepedia
The ringgit (unofficially known as the Malaysian dollar), is the official monetary unit of Malaysia. It is divided into 100 sen (cents) and its currency code is MYR. The Singapore dollar and the Brunei dollar are also called ringgit in Malay (although e.g. the U.S. and Australian dollars are dolar), hence its official abbrevation RM for Ringgit Malaysia.
The word ringgit means "jagged" in Malay, and was originally used to refer to the serrated edges of Spanish silver dollars widely circulated in the area.
The Malay names ringgit and sen were officially adopted as the sole official names in August 1975. Previously they had been known officially as dollars and cents in English and ringgit and sen in Malay, and in some parts of the country this usage continues. For example, in Penang one ringgit is "one dollar" in English and "tsit8-kho·1" (一塊)in Hokkien.
The use of the dollar sign "$" (or "M$") was not replaced by "RM" (Ringgit Malaysia) until the 1990s, though internationally "MYR" (MY being the country code for Malaysia) is more widely used.
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History
The most common currency in use in the East Indies was historically the Spanish dollar. In 1837 the Indian rupee was made the sole official currency in the Straits Settlements, but in 1867 silver dollars were again legal tender.
In 1903 the Straits dollar, pegged at two shillings fourpence (2s. 4d.), was introduced by a new Board of Commissioners of Currency and private banks were prevented from issuing notes.
The Straits dollar became the Malayan dollar in 1938, and continued to be issued by the Board of Commissioners of Currency, Malaya, until 1951, with a hiatus during the Japanese occupation (1942-1945). In 1952 the board was renamed the Board of Commissioners of Currency, Malaya and British Borneo. Malayan banknotes ceased to bear the image of the Queen after 1957, with the independence of the Federation of Malaya, which joined with Singapore, Sarawak and British North Borneo in 1963 to form Malaysia, with Singapore becoming a separate country in 1965.
On 12 June 1967 the Malayan dollar ceased to be issued, and was replaced by the Malaysian dollar issued by the new central bank, Bank Negara Malaysia, the Singapore dollar issued by the Board of Commissioners of Currency, Singapore, and the Brunei dollar issued by the Brunei Currency Board. The Board of Commissioners of Currency, Malaya and British Borneo, was finally wound up in 1979.
When the pound sterling was devalued in November 1967, Malayan dollar banknotes (pegged at 2s. 4d.) lost 15% of their value, but continued to be legal tender at the reduced value of 85 Malaysian cents per Malayan dollar until 1969. Malaysian dollars issued by the new central bank and the Singapore and Brunei dollars were not devalued. This led to a general strike, or hartal, and riots in Penang.
Until 1973, the Malaysian dollar was exchangeable at par with the Singapore and Brunei dollars. The Monetary Authority of Singapore and the Brunei Currency and Monetary Board still maintain the exchangeability of their two currencies.
Bank Negara Malaysia banknotes
Bank Negara Malaysia first issued Malaysian dollar banknotes in June 1967 in $1, $5, $10, $50 and $100 denominations. The $1000 denomination was first issued in 1968. Malaysian banknotes have always carried the image of the first Yang di-Pertuan Agong of Malaya.
The second series was issued with Malaysian traditional ornamental designs in 1982-1984, in $1, $5, $10, $20, $50, $100, $500, and $1000 denominations. The $20 was generally relatively uncommon. The second series notes are still occasionally encountered.
In 1993, $1 notes were discontinued and replaced by the $1 coin.
The current and third series was issued with designs in the spirit of Wawasan 2020 in1996-1999 in denominations of RM2, RM5, RM10, RM50 and RM100. The larger denomination RM50 and RM100 notes had an additional hologram strip to deter counterfeiters.
To commemorate the 1998 Commonwealth Games in Kuala Lumpur, a commemorative RM50 polymer banknote was issued, marking Malaysia's first usage of polymer banknotes. This note is hardly ever seen in normal usage, its use being a collector's commemorative.
In 1999 the RM500 and RM1000 notes were discontinued and ceased to be legal tender. This was due becuase of the Asian monetary crisis of 1997 when huge amounts of ringgit were taken out of the country to be traded in these notes. In effect the notes were withdrawn out of circulation and the amount of ringgit taken out of the country in banknotes was limited to RM1000. In 2000 the RM1 note was reintroduced, replacing the RM2 note which remains legal tender.
In 2004, Bank Negara issued a new RM10 note with additional security features including the holographic strip previously only seen on the RM50 and RM100 notes. A new RM5 polymer banknote with a distinctive transparent window was also issued. Both new banknotes are almost identical to their original third series designs. According to Bank Negara, all paper notes will eventually be phased out and replaced by polymer notes.
Bank Negara Malaysia Coins
Currently(year 2005), Malaysia coins available in 6 denominations :
- 1 sen (RM 0.01)
- 5 sen (RM 0.05)
- 10 sen (RM 0.10)
- 20 sen (RM 0.20)
- 50 sen (RM 0.50)
- 1 Ringgit (RM 1.00)
In 2005, Bank Negara announced that RM1 coins will cease to be legal tender beginning 7th December 2005. This is partly due to problems with standardization (two different versions of the coin were minted) and forgery.
Three denominations of gold bullion coins, the "Kijang Emas" (The kijang (a species of deer) is the official logo of Bank Negara Malaysia) are also issued, at the face value of RM 50, RM 100 and RM 200. It was launched on 17 July 2001 by Bank Negara Malaysia and minted by Royal Mint of Malaysia Sdn Bhd. The purchase and reselling price of Kijang Emas is determined by the prevailing international gold market price.
Currency peg
As a result of the Asian financial crisis of 1997, the ringgit was pegged to the U.S. dollar at the fixed rate of RM3.80 to the dollar.
On July 21, 2005, Bank Negara announced the end of the 7-year peg to the U.S. dollar immediately after China's announcement of the end of the renminbi peg to the US dollar. According to Bank Negara, Malaysia will allow the ringgit to operate in a managed float against several major currencies. This has resulted in the value of the ringgit rising closer to its perceived market value, although Bank Negara has intervened in financial markets to maintain stability in the trading level of the ringgit. However, what actually has happened is that the ringgit is still pegged, but the peg moves every few weeks or so. At present it is pegged at RM3.77 to the dollar.
Colour
Malaysian banknotes have long followed a colour code that originates in colonial times. In the lower denominations this pattern is followed by Singapore and Brunei, and when Bank Negara first introduced the RM2 note it copied the lilac of the Singapore $2 note.
- RM1 - blue
- RM2 - lilac
- RM5 - green
- RM10 - red
- RM20 - brown/white
- RM50 - blue/grey
- RM100 - violet
- RM500 - orange
- RM1000 - blue/green
Banknote pictures
| Front | Back | Features |
|---|---|---|
| Image:SMS0386 RM1 front s.jpg | Image:SMS0384 RM1 back s.jpg | Mount Kinabalu and "Wau Bulan" kite |
| Image:Image-SMS0386 RM2 front s.jpg | Image:Image-SMS0386 RM2 back s.jpg | Menara Kuala Lumpur communications tower and MEASAT satellite |
| Image:SMS0389 RM5 front s.jpg | Image:SMS0390 RM5 back s.jpg | KLIA and Petronas Twin Towers |
| Image:SMS0397 RM10 front s.jpg | Image:SMS0398 RM10 back s.jpg | Putra LRT train, Malaysia Airlines aircraft and MISC ship |
| Image:SMS0387 RM50 front s.jpg | Image:SMS0388 RM50 back s.jpg | Petronas oil platform |
| Image:SMS0387 RM100 front s.jpg | Image:SMS0388 RM100 back s.jpg | Proton car production line and engine |
External links
- Bank Negara Malaysia Currency page showing security features of current banknotes issue (RM1, RM2, RM5, RM10, RM50, and RM100 denominations).
- Bank Negara Malaysia Money Museum website providing numismatic collection, history of money in Malaysia, and galleries.
- Stamp & Coin Mart page on Malaysian Banknotes, including history of legal tender in Straits Settlements, Federation of Malaya and Malaysia.
