Thread: Forex Optimum
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Old 20-08-2015, 10:37
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Optimum Optimum is offline
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Default Re: Forex Optimum

New rate for FOG local exchanger

Why our rate is getting higher? What caused the drop in the ringgit’s value?

A combination of several factors. Firstly, the lower value of oil. As oil is one of Malaysia’s main exports, the declining price of Brent crude oil of 38% from its June 2014 high is affecting the currency.

As questions over Malaysia’s 1MDB debts have gained global attention, this has also affected confidence in the ringgit. Former Finance Minister Tun Daim Zainuddin was one of those who blamed the 1MDB financial debacle. However, those defending 1MDB also blamed the former Prime Minister Tun Dr. Mahathir Mohamad’s criticism of the government for the weakening currency.

In July 2015, media reports that Prime Minister Najib Razak’s personal accounts were involved in the transfer of USD700 million of 1MDB money have caused further weakening of confidence in the currency.
The falling value of the ringgit in June 2015 has also been attributed to the prospect of the US increasing its interest rates.

On 11 August 2015, China devalued its currency which caused other Asian currencies to suffer and pushed the ringgit down further, as the devaluation of the yuan strengthened the dollar.
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