Malaysia’s currency, the ringgit, has been dropping at a constant rate these past few weeks and many people are saying that it could even go lower that what it was during the 1997/98 financial crisis.
It is now at 3.56 to the US dollar (at the time of writing) and the lowest it got in 1998 was 4.88. It was then that the Prime Minister at that time, Tun Mahathir Mohamed, capped it at 3.8.
Why has our currency been dropping of late? There are many details to why it is so, but the main reason has to be the slump in crude oil prices which is US$48.36 (at the time of writing).
Our country’s economy is highly dependant on oil because Petronas’ revenue contributes about 40 per cent of the government’s revenue. So you can imagine the significance of oil prices.
Although many would see the drop in our currency as something that is detrimental (it actually is if prolonged), there are advantages to. We just need to understand where and how to benefit from it. [Click to read the full article at KopitiemEkonomi.Com]