You’re staring at a price tag that says RM50. Or maybe you're looking at a bank statement and seeing a weird abbreviation you didn't expect. If you’ve ever wondered what currency is RM, you aren't alone. It’s one of those financial shorthand codes that feels obvious once you know it, but totally cryptic if you’re just passing through or doing business internationally for the first time.
Basically, RM stands for Ringgit Malaysia.
It is the official money of Malaysia. If you go to a bustling night market in Kuala Lumpur or a high-end mall in Penang, every single price will be preceded by those two letters. While the rest of the world uses the ISO code MYR on currency exchange screens, locals and shops almost exclusively use RM.
The "Jagged" History of the Word
The word "Ringgit" actually has a pretty cool origin story. It’s an obsolete Malay term that means "jagged."
Why jagged? Back in the 16th and 17th centuries, Spanish silver dollars were the big currency in the region. These coins had serrated or "jagged" edges. People started calling them "ringgit" to describe the texture, and the name just stuck. It’s a bit like how Americans call a dollar a "buck," except in Malaysia, the nickname eventually became the official legal name of the currency.
Honestly, it’s a lot more interesting than just naming it "the dollar."
Is RM the same as MYR?
This is where people get tripped up. Short answer: Yes.
Think of it like the British Pound. You have the symbol (£) and the code (GBP). In Malaysia, RM is the symbol you use when writing a check or looking at a menu. MYR is the three-letter code used by banks, forex traders, and travel apps like Wise or Revolut.
In 1993, the Malaysian government officially swapped the old dollar sign ($) for RM to make it distinct. They wanted to clear up any confusion with the US dollar or the Singapore dollar. If you see an old document from the 80s, it might still have the $ sign, but today, that's a relic of the past.
Who Controls the Money?
The big boss here is Bank Negara Malaysia (BNM). That's the central bank. They’ve been the sole authority for printing these notes since 1967.
The Ringgit hasn't always just floated around freely. If you look back at the late 90s—specifically during the Asian Financial Crisis—Malaysia actually pegged the Ringgit to the US Dollar at a fixed rate of $3.80$. They did this to stop the currency from crashing while the rest of the region was in chaos.
They finally unpegged it in 2005, right around the same time China moved its currency. Now, it’s a "managed float," meaning the market mostly decides what it’s worth, but the central bank keeps a close eye on things to make sure it doesn't go off the rails.
What Does the Money Look Like?
If you hold a Ringgit note, you’ll see the same face on every single one. That’s Tuanku Abdul Rahman, the first Supreme Head of State of independent Malaysia. Don't confuse him with Tunku Abdul Rahman, the first Prime Minister—different guys, similar names.
The current series is called "Distinctively Malaysia." Each note has a different vibe:
- RM1: It’s blue and features a traditional Wau Bulan (moon kite).
- RM5: This one is green and made of polymer (plastic) so you don't accidentally ruin it in the wash. It features the Rhinoceros Hornbill.
- RM10: Red, featuring the massive Rafflesia flower.
- RM20: Orange, showing off local sea turtles.
- RM50: Green-blue, highlighting Malaysia’s oil palm trees and technology.
- RM100: Purple, with the majestic peaks of Mount Kinabalu.
There used to be RM500 and RM1,000 notes, but those were killed off in the late 90s to stop money laundering. If you find one in an old drawer today, it’s a collector's item, not something you can spend at Starbucks.
The Sen: Malaysia’s "Cents"
Each Ringgit is divided into 100 sen.
You’ll see coins in denominations of 5, 10, 20, and 50 sen. Fun fact: the 1 sen coin was phased out years ago. Now, shops just round your total to the nearest 5 sen. It saves everyone the headache of carrying around tiny copper coins that are worth basically nothing.
Why the Exchange Rate Matters Right Now
As of early 2026, the Ringgit has been through some swings. Since Malaysia is a massive exporter of electronics, palm oil, and petroleum, the value of RM often dances along with global oil prices and tech demand.
If you’re traveling to Malaysia, you’ll usually find that your USD, EUR, or GBP goes a long way. It’s an affordable country, but the "strength" of the Ringgit is a constant topic of debate in Malaysian coffee shops. When the RM is weak, exports are cheaper (good for business), but imported iPhones get really expensive (bad for everyone else).
Avoid These Common Mistakes
- Don't call it a "Dollar": While some older folks might still say "Malaysian dollar," it’s technically incorrect and hasn't been the official name since August 1975.
- The Space Myth: When writing it out, most people put a space between RM and the number (like RM 10), but the official standard is usually no space (RM10).
- Tipping: Malaysia isn't a huge tipping culture. If you’re at a cafe, the "Service Charge" is usually already baked into the bill.
Practical Steps for Handling RM
If you're heading to Malaysia or dealing with an RM-based invoice, here’s the smart way to handle it.
First, don't exchange your money at the airport. The rates there are notoriously bad. You’re much better off using an ATM in the city or a mid-market rate app. Most places in big cities like KL or Johor Bahru accept cards, but for those legendary street food stalls, you 100% need cold, hard cash.
Second, if you're a business owner receiving a quote in RM, always check the daily spot rate on a site like Bank Negara Malaysia’s official portal. Rates can fluctuate by 1-2% in a single week based on Federal Reserve news or oil price shifts.
Third, keep an eye on the 50 sen coins. There are different series in circulation—some are gold-colored and some are silver-colored. They’re both legal tender, so don't worry if your change looks a little inconsistent.
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The Ringgit is a stable, modern currency that reflects a country caught between deep tradition and high-tech ambition. Now that you know what currency is RM, you can navigate your next trip or business deal without wondering if you're looking at the right numbers.