Constantly Fluctuating Malaysian Currency Until Today

 

Today, we are going to discuss about the Malaysian currency that is constantly dropping day by day. Based on the line graph below, we can understand that the value of the Malaysian Ringgit has become poor when we compare it to the United States Dollar. Have you realized that the Malaysian currency is constantly fluctuating nowadays? Is this an issue? Yes, it is an issue. This is because most of the activities will be affected when financial investment is carried out.

I have wanted to travel around the world this year but when I look at today's currency rate, it has shaken me. The Malaysian currency against the United States currency shows RM 1 to USD 0.2209. This shows that the currency of Malaysia is getting poor and poor day by day. Briefly, we are able to exchange the Ringgit Malaysia 1 to the United States Dollar and will obtain only 0.2209. I had to throw the idea of visiting other countries and can only focus on the countries that have lower currency rates compared to the Malaysia currency rates such as Thailand and India. 

After looking at the currency rate, I had started to think about the current investors' feelings too. The poor currency rate has not only affected the business shareholders but also the individual investors such as those investing in the unit trust. A unit trust is entirely controlled by the currency rates which are constantly fluctuating. People have to hope for great currency rates in order to get a good return based on the investment. Apart from that, the interest rates in Fixed Deposits for the banks such as Maybank, and Public Bank has reduced too due to the poor currency rates.

The financial investment process gets affected when there is a fluctuation in the country's currency rate. When the currency rate of Malaysia improves, the investors in Malaysia can enjoy a good return and when the currency depreciates, the return that the investors get will be lower too. This will cause the investors to experience loss instead of profit.

For example, when the currency rates are becoming poor compared to the United States Dollar, there will be no investors who will be happy investing. Therefore, the number of investors will be constantly decreasing causing a lower amount of finance in the company. The growth of every company in Malaysia will get affected adversely. This can lead to the situation in which the country, Malaysia to be categorized as a poor country.

Therefore, it is very important for every country’s currency rates to be stable and less fluctuating.