The Malaysian ringgit: How a word for jagged edges became a national currency

History · Published 30 September 2026 Swipe more like this →

In short: The Malaysian ringgit takes its name from an obsolete Malay term for jagged, originally describing the serrated edges of Spanish silver coins. From its colonial origins and the 1997 Asian financial crisis to its modern managed float, the currency reflects a history of shifting economic sovereignty and regional identity.

The ringgit’s etymology traces back to the 16th-century circulation of Spanish pieces of eight, which were often crude, stone-like silver coins. By 1812, the term was already established in the Dictionary of the Malayan Language as a unit of money. These Spanish-American silver dollars, transported by Manila galleons, dominated Asian trade for centuries, eventually influencing the Straits, Sarawak, and British North Borneo dollars. The modern Malaysian ringgit emerged from this lineage, officially replacing the Malaya and British Borneo dollar at par on 12 June 1967.

The currency's path was defined by significant volatility and strategic intervention. During the 1997 Asian financial crisis, capital flight caused the ringgit to plummet, leading the Central Bank of Malaysia to peg the currency to the US dollar at 3.80 in September 1998. To curb speculation, the government designated the ringgit non-tradeable outside Malaysia, a status that persists today. This peg remained in place until 21 July 2005, when the bank shifted to a managed float system. Subsequent years saw the currency fluctuate due to global trade tensions, political uncertainty, and the 1Malaysia Development Berhad scandal, which triggered sharp depreciation in 2014 and 2015.

Beyond its value, the ringgit’s physical evolution reflects Malaysia's cultural identity. The first coin series, introduced in 1967, featured generic designs like the Houses of Parliament. By the second series in 1989, the coins incorporated local motifs such as the congkak board game and the national flower, the Hibiscus rosa-sinensis. The third series, launched in 2012, adopted the theme Distinctively Malaysia, utilizing flora and fauna motifs to represent the nation's diverse heritage. Today, the currency remains a tool of national policy, with the government and Bank Negara Malaysia actively managing its stability to support economic growth, as evidenced by its 2.7% appreciation against the dollar in 2024.

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