Editing Malaysian ringgit (section)

=== After independence (1967–1997) ===

On 12 June 1967, the Malaysian dollar, issued by the new central bank, [[Central Bank of Malaysia]], replaced the [[Malaya and British Borneo dollar]] at [[Par value#Currency|par]].<ref>[http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=4 International Economics - Historial Exchange Rate Regime of Asian Countries] {{webarchive |url=https://web.archive.org/web/20150708040945/http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=4 |date=8 July 2015 }}</ref> The new currency retained all denominations of its predecessor except the $10,000 denomination, and also brought over the colour schemes of the old dollar. Over the course of the following decades, minor changes were made to the notes and coins issued, from the introduction of the M$1 coin in 1967, to the demonetization of RM500 and RM1,000 notes in 1999.

As the Malaysian dollar replaced the Malaya and British Borneo dollar at par and Malaysia was a participating member of the [[sterling area]], the new dollar was originally valued at {{frac|8|4|7}} dollars per 1 [[British pound|British pound sterling]]; in turn, £1 = US$2.80 so that US$1 = M$3.06. In November 1967, five months after the introduction of the Malaysian dollar, the pound was devalued by 14.3% from US$2.80 to US$2.40, leading to a collapse in confidence for the sterling area and its demise in 1972. The new currency stayed pegged to the [[U.S. dollar]] at US$1 = M$3.06, but earlier notes of the Malaya and British Borneo dollar were devalued from US$2.80 to US$2.40 for 8.57 dollars; consequently these notes were reduced in value to 85 cents per dollar.

Despite the emergence of new currencies in Malaysia, [[Singapore]] and [[Brunei]], the Interchangeability Agreement which the three countries adhered to as original members of the currency union meant the Malaysian dollar was exchangeable at par with the [[Singapore dollar]] and [[Brunei dollar]]. This ended on 8 May 1973, when the Malaysian government withdrew from the agreement.<ref name="Interchangeability Agreement">{{cite web
 |url=http://www.mas.gov.sg/currency/currency_info/Heritage_Collection.html 
 |title=The Currency History of Singapore 
 |access-date=3 July 2008 
 |date=9 April 2007 
 |publisher=Monetary Authority of Singapore 
 |quote=Official Currencies of The Straits Settlements (1826-1939); Currencies of the Board of Commissioners of Currency, Malaya (1939-1951); Currencies of the Board of Commissioners of Currency, Malaya and British Borneo (1952-1957); Currencies of the Independent Malaya (1957-1963); On 12 June 1967, the currency union which had been operating for 29 years came to an end, and the three participating countries, Malaysia, Singapore and Brunei each issued its own currency. The currencies of the 3 countries were interchangeable at par value under the Interchangeability Agreement until 8 May 1973 when the Malaysian government decided to terminate it. Brunei and Singapore however continue with the Agreement until the present day. 
 |url-status=dead 
 |archive-url=https://web.archive.org/web/20100202075742/http://www.mas.gov.sg/currency/currency_info/Heritage_Collection.html 
 |archive-date=2 February 2010 
 |df=dmy 
}}</ref> The [[Monetary Authority of Singapore]] and the Brunei Currency and Monetary Board still maintain the interchangeability of their two currencies, as of 2021.<ref name="Interchangeability Agreement"/> The Malaysian Ringgit name was introduced in 1975.

In 1993, the currency symbol "RM" (Ringgit Malaysia) was introduced to replace the use of the dollar sign "$" (or "M$").