Currency Exchange

[laukk]

yesterday@0930 rate at woodlands town center 266. Johore permas baru was 267.chinatown point also 267 !!!! good to accumulate for future chiong use !!!!

[octman]

Yesterday nite change rate 265............after Malaysia custom, B point beside Money changer.......Think the rates will exceed 270 soon

[KohOnly21]

266.50 ang Mo Kio central block 702.

[mark_07]

any JB exchange rate update?

[funny_man]

http://www.raffles1.net/currency.php

Updated this morning is 2.659
Saudi King pass away this morning, oil price will go up, maybe will affect exchange rate. Change early before the market speculates...

[36SCE]

Originally Posted by mark_07

any JB exchange rate update?

On 22 Jan, most shops in JB offering 2.69

[localbest]

The few main reasons as to why the ringgit value will continuously depreciate are due to the fall in the oil price and the strong US dollar.

Oil price has drop from US$95 per barrel to US$45 per barrel. Malaysia depend heavily on oil export to other country to generate revenue for the country and the oil revenue constitute 33 % or one third of its total revenue.

Although some msian may think that the fall in the value of ringgit can help boost export but is msia a high exporting country like Japan or Korea.

Msia ringgit is the worst performing currency in asia last year as stated from the source and. Msia hold external debt of about 170 billion ringgit $170,000,000,000.00.

Putting money in ringgit is a no-no business because the interest that it offered is unable to cover the exchange rate loss. Therefore do not change too much surplus or else you will find your ringgit buying power gets weaker....

[36SCE]

Ringgit cannot keep falling. Million dollar question is how low will it go before it reaches bottom. As for me, I don't speculate in currencies. I just change in advance for couple of day trips spending.

[localbest]

Originally Posted by 36SCE

Ringgit cannot keep falling. Million dollar question is how low will it go before it reaches bottom. As for me, I don't speculate in currencies. I just change in advance for couple of day trips spending.

As to when the ringgit will reach its lowest will depend on many internal and external factors like :

1) How fast the oil price stabilises as Malaysia is an oil export country.

2) Before the aviation disasters that had happened past few months ago, malaysian airline has already suffered a big loss due to its poor revenue management and rising fuel costs.

The company then suspended services to many locations due to poor occupancy rate. (if every trip has too few passenger then it will be flying at a loss in revenue).

However, after the disasters happened e.g. 3 incidents of Malaysia airline (2fatal and 1 non-fatal) MH370 and MH 17, Malaysian airline has suffered another great impact as it lost two Boeing 777 aircraft which is very expensive and they have to compensate for the damages. The company stock has also fallen by about 80% and ticket sales had also declined substantially.

There are also 3 incidents of airasia (1 fatal and 2 non-fatal) has contributed to the loss in revenue. Now majority of the Malaysian would rather take air-con bus or train or taxi or own transport back to their kampong and will not even consider taking a plane back to their hometown during Chinese new year as they lost confident with both airlines management.

3) Flood last month has caused many damaged to property and facility and infrastructure which needs to be repaired and funds to help the poor to build their homes. The amount the msia garmen spend on this will affect the ringgit as the debt becomes more.

4) US dollar always move in the opposite direction against the ringgit. When US dollar appreciate, ringgit value will fall. The worst was during the year 1998 when the asean economic crisis happen. At that time 1US$ = rm3.70. But as you can see now the value of us dollar is 1US$ = rm3.62 coming close to the value during the economic crisis. Now US dollar is appreciating and this is beyond the control of the msia govt.

5) 45% of the govt bond is owned by foreigner, therefore once there is selling off of the bonds, the value of ringgit will suffer more. Any negative news will cause foreign investors to lose confident and sell off their bonds and contribute to the fall in the ringgit value.

6) the fall in rubber price and palm oil price also reduce the revenue collected and in turn affect the value of the ringgit.

7) Has little foreign reserve and hugh debt unlikely to help the ringgit to a stabilise level.

[36SCE]

Originally Posted by localbest

As to when the ringgit will reach its lowest will depend on many internal and external factors like :

Thanks for sharing the many possible scenarios. I'm just a simple tourist hoping the low Ringgit will remain for some time more whllst we continue to ensure our higher spending power in Malaysia

[newbie85]

Went a couple of days ago. Got 2.65, seems like they are expecting ringgit to rise a bit. Indeed it has.