Malaysian ringgit facts for kids

Quick facts for kids Malaysian ringgit
Ringgit Malaysia (Malay) ريڠݢيت مليسيا‎ (Jawi)
Malaysian ringgit third-series coinage and fourth-series banknote designs, announced in 2012 by Central Bank of Malaysia
ISO 4217 Code	MYR
Official user(s)	Malaysia
Unofficial user(s)	List Southeast Asia:  ∟ Cambodia  ∟ Indonesia  ∟ Philippines  ∟ Thailand  ∟ Vietnam East Asia:  ∟ China
Inflation	3.38% (2022)
Source	Department of Statistics, Malaysia
Subunit
1⁄100	sen
Symbol	RM
sen	kupang (1⁄10 subunit, notably in Kedah and northern Peninsular Malaysia)
Plural	The language(s) of this currency does not have a morphological plural distinction.
Coins
Freq. used	5, 10, 20, 50 sen
Rarely used	1 sen (discontinued, still legal tender)
Banknotes
Freq. used	RM1, RM5, RM10, RM20, RM50, RM100
Rarely used	RM2 (discontinued, still legal tender); RM60, RM600 (commemorative)

The Malaysian ringgit is the official money of Malaysia. It is also known as Ringgit Malaysia in the Malay language. The currency uses the symbol RM and the code MYR. The Central Bank of Malaysia issues the ringgit. Each ringgit is divided into 100 smaller units called sen.

What Does 'Ringgit' Mean?

18th-century Spanish dollar with jagged edges.

The word ringgit comes from an old Malay word. It means "jagged" or "serrated". This name was first used for the Spanish coins that were common in the region. These coins had rough, jagged edges.

The Spanish controlled the nearby Philippines. This is why their coins were widely used in Malaysia. An old dictionary from 1812 already called the ringgit a unit of money.

Today, ringgit almost always means the Malaysian currency. The money of Singapore and Brunei are also called ringgit in Malay. But to avoid confusion, Malaysia's money is called Ringgit Malaysia. That is why its official symbol is RM.

In some parts of Malaysia, especially in the north, a 10 sen coin is called kupang. Tamil-speaking people in Malaysia call ringgit veḷḷi, which means "silver". They use kācu for sen, which is where the English word "cash" comes from.

A Brief History of Malaysian Money

Early Money Before Independence

Before Malaysia became independent, the Spanish dollar was very important. It was used for trade across Asia and the Americas. This Spanish dollar was eventually called the ringgit.

Later, other dollars appeared in the region. These included the Straits dollar, Sarawak dollar, and British North Borneo dollar. These currencies eventually led to the Malayan dollar and the Malaya and British Borneo dollar. Finally, these became the modern Malaysian ringgit, Singapore dollar, and Brunei dollar.

The Ringgit After Independence (1967-1997)

On June 12, 1967, the Malaysian dollar was introduced. It replaced the Malaya and British Borneo dollar. The new currency kept similar designs and colours. Over the years, small changes were made to the notes and coins.

At first, the Malaysian dollar was linked to the British pound. But this link ended in 1972. The Malaysian dollar then became linked to the U.S. dollar.

For a while, Malaysian, Singaporean, and Brunei dollars could be exchanged for each other at the same value. This agreement ended on May 8, 1973. However, Singapore and Brunei still keep their currencies interchangeable.

In 1975, the names ringgit and sen became the only official names. Before that, they were also called dollars and cents in English. In 1993, the symbol "RM" was introduced. It replaced the old dollar sign "$".

The Ringgit During the Asian Financial Crisis (1997-2005)

Between 1995 and 1997, the ringgit's value changed freely against the US dollar. But in 1997, the 1997 Asian financial crisis hit. Many people took their money out of Malaysia. This caused the ringgit's value to drop a lot.

In September 1998, the Central Bank of Malaysia decided to fix the ringgit's value. It was set at 3.80 ringgit for every US dollar. This helped to stabilize the economy. Also, the ringgit could no longer be traded outside Malaysia. This stopped more money from leaving the country.

Because of the crisis, the RM500 and RM1,000 banknotes were stopped. These large notes were used to move a lot of money out of the country. From July 1, 1999, these notes were no longer valid. You could only exchange them at the central bank.

On July 21, 2005, Malaysia stopped linking the ringgit to the US dollar. Now, the ringgit's value can change more freely. The central bank still watches the market to keep the ringgit stable.

Recent Performance of the Ringgit (2005-Present)

After the peg ended, the ringgit's value went up against the US dollar. It reached 3.16 ringgit per US dollar in April 2008. There were talks about allowing the ringgit to be traded outside Malaysia again. But the government decided to keep it non-tradeable. This helps prevent currency speculation.

Later, the ringgit's value dropped again. This was due to political changes and falling oil prices. It also dropped because of the 1Malaysia Development Berhad scandal. This scandal involved claims of money being moved out of the country. The ringgit reached its lowest point since 1998 in September 2015.

In November 2016, the Central Bank of Malaysia took action. They cracked down on illegal trading of the ringgit. Since then, the ringgit has slowly gained value against the US dollar. Its value also improved against other major currencies.

Coins of Malaysia

First Series Coins (1967)

The first Malaysian coins were introduced in 1967. They came in 1, 5, 10, 20, and 50 sen values. A 1 ringgit coin was added in 1971. These coins had similar designs. They showed the Malaysian Houses of Parliament and the federal star and crescent moon.

The 1 sen coin was made of bronze, then copper-clad steel. Other coins were made of cupronickel. The 50 sen coin was changed in 1971 to have "Bank Negara Malaysia" written on its edge. These coins were designed by Geoffrey Colley.

The 1 ringgit coin was not very popular. People preferred the 1 ringgit banknote. These first series coins are still legal tender but are rarely seen today.

Second Series Coins (1989)

The second series of coins came out in 1989. They had new designs but kept similar sizes. These coins showed elements of Malay culture. For example, the 10 sen coin had a congkak board. The 50 sen coin featured a wau bulan (moon kite). The national flower, the Bunga Raya (hibiscus), was also included. Low Yee Kheng designed this series.

The 1 ringgit coin was made smaller. It was also made from a different metal mix. In 1993, the "$1" symbol on the coin was changed to "RINGGIT". This 1 ringgit coin was removed from circulation in 2005. This was because there were problems with different versions and fake coins.

Since 2008, prices are rounded to the nearest 5 sen when you pay. This means the 1 sen coin is not used as much. However, 1 sen coins are still legal for payments up to RM2.00.

Third Series Coins (2012)

The third series of coins was released on January 16, 2012. Their theme is "Distinctively Malaysia". The designs show plants and animals from different Malaysian cultures. This reflects Malaysia's diverse identity. The coins are 5, 10, 20, and 50 sen.

These new coins are cheaper to make. The 20 sen and 50 sen coins changed from silver to yellow. The front of the coins has new designs. They feature fourteen dots for the states and federal territories. Five horizontal lines represent the five principles of Rukunegara.

The 50-cent coin has nine indentations. It also has a special security feature. When you tilt the coin, you can see "50" and "SEN".

Kijang Emas Gold Coins

Malaysia also has special gold coins called "Kijang Emas". A kijang is a type of deer, and it's part of the Central Bank of Malaysia's logo. These coins come in RM50, RM100, and RM200 values. They are made of pure gold.

The Kijang Emas coins are mostly for investment. They are not used for daily shopping. Their price changes with the international gold market. Malaysia became the twelfth country to issue its own gold bullion coins in 2001.

Banknotes of Malaysia

First Series Banknotes (1967)

The Central Bank of Malaysia first issued banknotes on June 6, 1967. They were in $1, $5, $10, $50, and $100 values. A $1000 note was added in 1968. These first banknotes showed Tuanku Abdul Rahman. He was the first King (Yang di-Pertuan Agong) of independent Malaya.

In 1972, the banknotes started using the new official Malay spelling. Both old and new spelling notes were used together.

First series
Image		Value	Main colour	Description		Date of issue	Issue suspended	Date of withdrawal
Obverse	Reverse			Obverse	Reverse
		$1	Blue	Tuanku Abdul Rahman (1895–1960)	Central Bank of Malaysia Logo, the Kijang Emas	June 1967	1984	Limited
		$5	Green
		$10	Red				1983
		$50	Blue/grey
		$100	Violet
		$1000	purple/green		Parliament building in Kuala Lumpur	2 September 1968	1984	1999
For table standards, see the banknote specification table.

Second Series Banknotes (1982-1984)

The second series of banknotes came out between 1982 and 1984. Their main theme was traditional Malaysian designs. New $20 and $500 notes were introduced. The $10, $50, and $100 notes were redesigned. Finally, the $1, $5, and $1000 notes were updated.

In 1986, a security strip was added to most notes. The $1 notes stopped being printed in 1993. The $1 coin replaced them. The $20 notes were not popular and were removed from circulation by 1995.

In 1999, the RM500 and RM1000 notes were stopped. They were no longer legal tender. This was done to control money leaving the country during the Asian financial crisis.

Second series
Image		Value	Main colour	Description		Date of issue	Issue suspended	Date of withdrawal	Remark
Obverse	Reverse			Obverse	Reverse
		$1	Blue	Tuanku Abdul Rahman	The National Monument in Kuala Lumpur	1984	1993	Limited	with blind mark before 1986; none since 1986.
		$5	Green		Then current Istana Negara in Kuala Lumpur	1984	1999
		$10	Red		Kuala Lumpur Railway Station	1983	1998
		$20	Brown/white		Central Bank of Malaysia headquarters in Kuala Lumpur	1982	1995
		$50	Blue/grey		National Museum in Kuala Lumpur	1983	1998
		$100	Violet		National Mosque in Kuala Lumpur	1983
		$500	Orange		Then current Supreme Court building in Kuala Lumpur	1982	1999
		$1000	Blue/green		Parliament building in Kuala Lumpur	1984	1999
For table standards, see the banknote specification table.

Third Series Banknotes (1996)

The third series of banknotes was issued in 1996. Their designs were inspired by Malaysia's vision for the future, called Wawasan 2020. This series included RM1, RM2, RM5, RM10, RM50, and RM100 notes. The RM50 and RM100 notes had a special hologram strip. This was to prevent people from making fake money.

In 2004, a new RM10 note was released with more security features. A new RM5 note was also issued. This RM5 note was made of plastic (polymer) and had a clear window. The central bank planned to replace all paper notes with polymer ones.

Fourth Series Banknotes (2012)

In 2008, a new RM50 banknote was released. Its theme was "National Mission". This showed Malaysia's goal to improve its economy. The note kept the portrait of Tuanku Abdul Rahman. It also featured the national flower, the hibiscus. Designs from songket weaving were included.

The first 50 million new RM50 notes had a special design. They showed Tunku Abdul Rahman, Malaysia's first Prime Minister. They also had the logo for the 50th Anniversary of Independence. These notes had many security features to prevent fakes.

In 2011, the Central Bank announced a new series of banknotes. This series brought back the RM20 note. The designs were revealed in December 2011. They started circulating on July 16, 2012. All notes in this series keep the portrait of Tuanku Abdul Rahman.

Special Commemorative Banknotes

1998 Commonwealth Games Note

A special RM50 polymer banknote was issued on June 1, 1998. This was to celebrate the 1998 Commonwealth Games held in Kuala Lumpur. It was the first polymer banknote from Malaysia. These notes were mainly for collectors and are rarely used in daily life.

50th Anniversary of Independence Note

On December 21, 2007, a commemorative RM50 banknote was released. It marked Malaysia's 50th year of independence. This note looked like the regular RM50 note. But it had an extra logo for the 50th Anniversary and the date "1957-2007".

60th Anniversary of Independence Agreement Note

On December 14, 2017, two more special banknotes were issued. They celebrated 60 years since the signing of the Federation of Malaya Independence Agreement. These were RM60 and RM600 notes. The RM600 note is the largest legal banknote ever issued in the world! It measures 370mm by 220mm.

These notes were sold at a higher price because they are collector's items.

Images for kids

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  Malaysian ringgit third-series coinage and fourth-series banknote designs, announced in 2012 by Central Bank of Malaysia

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  18th-century Spanish dollar with milled edges (jagged or "beringgit")

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  First series $1 banknote (1967)

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  First series $5 banknote (1967)

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  First series $10 banknote (1967)

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  First series $50 banknote (1967)

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  First series $100 banknote (1967)

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  First series $1000 banknote (1967)

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  First series $1000 banknote (1967) reverse

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  Second series $1 banknote (1984)

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  Second series $5 banknote (1984)

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  Second series $5 banknote (1984) reverse

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  Third series RM2 banknote (1996)

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  Third series RM2 banknote (1996) reverse