Impact Of Depreciating Ringgit

The depreciation of ringgit had affected that the inflation occurred in malaysia.

Impact of depreciating ringgit. This statement is supported by amir hashim 2009 where he concludes that the depreciation of the ringgit affect the price to increase based on his study in asean crises 1997. The local currency revisited the 4 00 level against the us dollar last week. Our closest neighbor malaysia has seen her currency the ringgit rm depreciate to a 17 year low of 2 72 against the singapore dollar sgd. But it has not performed any worse than its asian peers since the beginning of this month and has been among the best performers in the region in the past six months.

However it was just one of the effects that appeared in ringgit depreciation. The electronic importers would have to pay more to purchase their supply leading to lower profit margin. Sectoral effects of ringgit depreciation shocks article pdf available in journal of economic development 32 2 135 156 december 2007 with 2 784 reads how we measure reads. So where is the ringgit which saw its worst depreciation two years ago getting its strength from.

Here are some ways that people living in singapore will benefit from. Price pressure can be relatively high as compared to before. In the world we live in today the foreign exchange forex market affects us in ways it didn t used to. Malaysia s ringgit has slid past 4 0 against us dollar in the worst currency crash seen for the first time in 17 years.

On 29 september the ringgit had weakened 6 3 from 28 august and 36 0 from the. To investigate how the appearance of ringgit depreciation during 2014 to 2016 we need to determine and identify the factors that related to this case and fully aware of the truth. Depreciation in ringgit would imply that their cost of buying raw materials is higher. The currency has been in a tailspin since late summer after a number of domestic and external factors conflated to shake investors confidence in malaysian assets making the ringgit one of the world s worst performing currencies.

The recent episode of ringgit depreciation should similarly boost exports by q2 2015. The value of the ringgit is becoming more stable with the depreciation level standing at 2 9 per cent on dec 13 2018. Posted on april 11 2015 saturday at 11 31 pm bizhive. Impact of the depreciating ringgit 0.

The impact of depreciating in currency makes the price automatically become higher than before.