The government has no plans to peg the ringgit to the US dollar as such a move is fraught with high risks and a large trade-off, said Finance Minister Tengku Zafrul Abdul Aziz.

He said a peg would not be the best move for the economy as it would require Malaysia to follow the monetary policy of the country to which the ringgit is pegged.

“For example, if the ringgit is pegged to the US dollar, Malaysia’s overnight policy rate...