Malaysia does not need to peg the ringgit to the US dollar to stop the currency from plummeting as the easiest way out is to resolve 1MDB fiasco, PKR secretary-general Rafizi Ramli (photo) said today.

The currency's drop in value was not due to global volatility, chaotic markets or other financial problems but because of 1MDB and Prime Minister Najib Razak, he noted.

"That's why Bank Negara and others disagreed on pegging the ringgit to the US dollar and controlling the currency," he said at a press conference in Kuala Lumpur.

"Why do you need to drag the whole economy into something that has pros and cons when the easiest solution is to resolve the 1MDB and Najib affair," he stressed.

"There is no need to peg the ringgit, because we need only to 'peg' Najib, that's it," he quipped.

Malaysia's currency has hit an 18-year low, reaching RM4.40 to US$1 last week.

Bank Negara governor Zeti Akhtar Aziz has said she expected the ringgit to start recovering once the issues surrounding troubled state fund 1MDB are resolved.