Hi there, how would you go about setting up the problem below?

Premise: The Malaysian government currently has a policy of pegging the exchange rate value of its currency to the U.S dollar at the rate of 3.8 ringgit per U.S. dollar.It uses unsterilized official intervention to maintain the pegged rate.

Under current conditions, nonofficial supply and demand in the foreign exchange market would be equal at the value 3.4.

Statement to evaluate:If the Malaysian government shifts to a floating exchange rate for the country's currency, then the government's holdings of official international reserve assets no longer will be rising, and the country's bank deposits at the central bank no longer will be shrinking.