Speaking on national television after the new controls were announced, Mahathir said the government had decided that there would be `` no value attached to the Malaysian ringgit outside of Malaysia.''

Malaysia's central bank earlier today announced a raft of new foreign exchange controls to stabilise currency rates and ``insulate'' the domestic economy from adverse global developments.

The announcement, made two hours ahead of a national television address by prime minister Mahathir Mohamad, followed the sudden resignations of the central bank governor and his deputy on Friday.

``The over-riding objective of the new measures is to regain monetary independence and insulate the Malaysian economy from the prospects of further deterioration in the world economy and financial environment,'' Bank Negara Malaysia said in a three-pagestatement.

Bank Negara said the new foreign exchange controls took immediate effect and covered external accounts, authorised depository institutions, trade settlements and currency held by travellers.

For external accounts, central bank approval will now be required for transfers between accounts and for transfers to resident accounts after September 30. Except for purchases of ringgit assets, approval is also required to withdraw ringgit from external accounts.

Authorised depository institutions alone will be allowed to buy and sell ringgit financial assets and all settlements of exports and imports will have to be made in foreign currency, the central bank said.

As for travellers, the amount of currency they bring into or take out of the country will be limited to 1,000 ringgit (244 dollars).

Resident travellers will be allowed to take out 10,000 ringgit but non-resident travellers will only be allowed to take out the equivalent of what they brought into the country.

Malaysia must be ``adequately prepared to minimise the impact of a possible global economic crisis and a breakdown in the international financial system,'' the central bank said justifying the controls.

`` The experience of other countries has shown that those which instituted measures to insulate themselves from external developments were in a better position to meet the challenges of adverse global developments,'' it added.

The bank said the controls were imposed to limit the contagion effects of external developments, preserve recent gains in policy measures and ensure currency and stability to revive investor and consumer confidence.