For anyone concerned with the Malaysian economy would be closely monitoring the Malaysian Ringgit. This is because the Malaysian currency has been dropping like durians which is currently the season, isn’t it?
It has been declining for some time now and it is now falling to 7.9% which puts the Ringgit the worst performing currency among Asian currencies. In fact, it has dropped to its lowest in the last 10 YEARS!!.
Malaysia is ranked A- by Fitch Ratings and will now decide if this will be downgraded. According to its officials, Fitch will be reviewing its assessment of Malaysia before June ends because the signs are not very good.
There was a lot of concern of the ability of the 1MDB to meet its debt obligations back in March which is why a downgrade might occur. Besides that, the worsening trade balance is another issue.
April – the GST was implemented
9th June – The Ringgit dropped to its 9-year low against the US Dollar
29th June – The Ringgit dropped further, lowest in the last decade.
If nothing is done soon, who knows what will happen to the Malaysian Ringgit!
Surely, the leaders will tell the people not to panic, because there is nothing to worry about!
6th July – the Malaysian Ringgit drops to yet another low in light of the latest graft allegations against Najib over the 1MDB issue. It fell as much as 0.8% against the US Dollar which puts it at RM3.8070 per 1 US Dollar. This is the weakest it has been since the Asian Financial Crisis back in 1998.
12th August – The ringgit has dropped to an all-time low since 1998. As of 12th August, the Malaysian ringgit has plunged beyond 4 to 1 US Dollar. Some attributed this to the devaluation of the Chinese Yuan which has heaped more pressure on the ringgit. Sometime around 1.30pm of this day, it was RM4.0365 to USD1. This caused the KLCI to suffer as it dropped to its lowest close since February 2013.