Ringgit Weakens Against SGD Months After Anwar Ibrahim’s PM Appointment
Earlier today (18 Feb), the Malaysian ringgit (RM) dropped to RM3.31 for every Singapore dollar (SGD).
This is a departure from the recent strengthening of the RM following Anwar Ibrahim‘s appointment as Prime Minister (PM) last November.
Some speculate that the depreciation is due to the Malaysian government’s oversight. However, the nation’s Finance Ministry denies such claims.
Ringgit at its weakest since Anwar became PM
According to the currency conversion site XE.com, the SGD-MYR conversion rate has now risen to RM3.31.
This is the highest it’s been during Anwar’s term as Malaysia’s PM.
While this is good news for Singaporeans looking at a short trip to Malaysia, it raises questions about the current state of Bank Negara Malaysia (BNM).
Source: Google Photos
Depreciation of ringgit due to global forces
However, Malaysia’s Ministry of Finance (MOF) assured that there is nothing to be worried about.
On Thursday (16 Feb), Malay Mail reported that the country’s financial state has been under scrutiny since last year. In Sep 2022, the ringgit dropped to RM4.74 against the United States dollar (USD), planting doubts about the state of the country.
In response, Malaysia’s MOF recently released an official statement addressing the issue.
The Finance Ministry explained that the depreciation is caused by high inflation and interest rates imposed by the US Federal Reserve.
Source: Pixabay on Pexels
They went on to say that although the government cannot control these global forces, they are doing what they can to alleviate the ringgit’s decline.
Welcome news for Singaporeans crossing the Causeway
During the Budget announcements earlier this week, Singapore’s Deputy Prime Minister Lawrence Wong alluded to the current inflationary climate.
For Singaporeans who want to save money on travel, the depreciation of the RM will likely come as welcome news.
Source: Umar Mukhtar on Pexels
However, we can only hope that the SGD remains strong in the coming months, as the economy can be rather unpredictable.
So spend wisely even if you have the means to, and make sure you have enough set aside for rainy days.
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Featured image adapted from Peggy Anke on Pexels and Anwar Ibrahim on Facebook.
