The current value of the ringgit fixed at 3.80 to the US dollar is fair and will not be reviewed, said Bank Negara governor Zeti Akhtar Aziz.

Despite the US dollar hitting lows against the euro, there were no "misalignments", she was quoted as saying by the Business Times newspaper today.

In the last 12 months, the dollar lost 16 percent against the euro and 11 percent against the yen, and with the peg the ringgit was also weakened, the report said.

'Served Malaysia well'

The ringgit peg is the last remnant of capital controls imposed in September 1998 by former prime minister Dr Mahathir Mohamad to counter a recession caused by the Asian financial crisis.

Some analysts said it was time for the government to remove the peg given the weakening dollar.

But Zeti ruled out a review and said a stable and fundamentally sound exchange rate system would best serve the country's economic interests.

"The pegged exchange rate has served Malaysia well. It continues to serve Malaysia well. This is manifested in terms of the significant growth in the volume of trade and the steady inflow of foreign direct investment," she said. - AFP