Connect with us


Finance Minister: Ringgit’s Current Depreciation Only Temporary, Projects A Strong Recovery Soon


Feat Image Ringgit Depreciation Temporary
Source: Malay Mail & The Malaysian Reserve.

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

The Minister of Finance, Tengku Datuk Seri Zafrul Tengku Abdul Aziz has assured Malaysians that the Ringgit’s current depreciation was due to temporary factors and that a strong recovery in the near future for our nation’s currency has been projected by foreign analysts. In a statement yesterday, Tengku Zafrul said that this is based on analysts’ overall media projections of the Ringgit against the US Dollar for the second, third and fourth quarters of 2022 as well as the first quarter of 2023 which stood at 4.37, 4.35, 4.28  and 4.27 respectively.

Furthermore, as reported by national news agency Bernama, the overall average of the Ringgit against the US Dollar projected by foreign analysts for Q2 2022, Q3 2022, Q4 2022 and Q1 2023 stood at 4.35, 4.37, 4.29 and 4.25, respectively. As for the ringgit’s depreciation that we are seeing currently, the Finance Minister attributed it to temporary factors such as expectations of the global monetary policy and the continued tightening of global liquidity. Both of these factors have alarmed the international investor community, hence contributed to the depreciation of our currency.

9Eb0Bec1 87Cf 4569 90D8 68C1E54Feed5

Finance minister, tengku datuk seri zafrul tengku abdul aziz.

Tengku Zafrul further elaborated,

“As a result, they have reallocated funds to higher-yielding assets denominated in US Dollar. This has led to the depreciation of various global currencies, including the Ringgit,” 

Besides that, the weakening of the Chinese Yuan is also a contributing factor to our currency’s depreciation. The Chinese Yuan has been gravely affected by the expectations of a deteriorating China’s growth prospects following the Republic’s implementation of movement restrictions in major cities. Speaking of which, the International Monetary Fund (IMF) has also recently lowered its forecast for China’s economic growth from 8.1% in 2021 to 4.4% this year.

A weakened Chinese Yuan has a significant impact to our currency due to the sizeable volume of Malaysia-China trade. In fact, exports to China accounts for 10.7% of our gross domestic product (GDP).

F979B0B2 4947 484D 8E7F 60Fb6Bede76D

For illustration purposes.

Tengku Zafrul also stressed that the volatile situation of global geopolitical tensions has put pressure on global economies. As such is reflected in the value of the VIX, or the investor ‘fear index’, which increased to 25.7 points on 28 May 28 from the previous average of 18 points.This has also caused investors to flock to ‘safe-haven assets’ such as gold and the US Dollar, putting downward pressure on various currencies, including the ringgit.

What do you guys think of this statement by the Finance Minister? Share your thoughts with us in the comments.


Also read: Johor MB: Ringgit’s Decrease In Value Compared To SGD Will Benefit The State

Feat Image Sgd Myr Johor

Source: Malay Mail

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

Just In

Ft Ismail Ft Ismail
News13 hours ago

Former PM Ismail Sabri Says He is Ready to Quit Politics & That GE15 Was His Last Election

Following UMNO’s surprisingly disappointing results during the 15th General Election, the survival and the future of the party was questioned....

Ft Igp Ft Igp
News1 day ago

IGP: Public Must Follow Dress Codes at Police Stations Except in ‘Life or Death’ Emergencies

It was recently reported that a woman had complained that she had been denied entry into Kajang police station over...

Ft Kelantan Ft Kelantan
News2 days ago

Kelantan Corporation Responds to Backlash After Employment of State MB & Deputy’s Children

Recently, the employment of the Kelantan Menteri Besar and his deputy’s children in the Kelantan State Economic Development Corporation (PKINK)...

Nga Kor Ming Legalise Fireworks Nga Kor Ming Legalise Fireworks
News2 days ago

Federal Government Agrees To Legalise Fireworks & Firecrackers, Says Nga Kor Ming

When the festivities are near, we will definitely hear many people playing with firecrackers and fireworks even though it is...

My Post 1 97 My Post 1 97
News3 days ago

KL High Court Rejects Zahid Hamidi’s Bid to Permanently Regain Passport For DPM Duties

Datuk Seri Dr Ahmad Zahid Hamidi failed in his application at the Kuala Lumpur High Court to get his passport...

Collage Fahmi Collage Fahmi
News4 days ago

“Don’t be shy, join me” – Communications Minister Says He Doesn’t Want A Dedicated Lift

Did you know that besides riding in a car amidst an entourage of blacked out cars and police vehicles, Malaysian...

My Post 1 90 My Post 1 90
News5 days ago

Petaling Street Listed Under USA’s Report of Most Notorious Markets For Counterfeit Products

For many, visiting Petaling Street aka Chinatown in Kuala Lumpur is an experience of food, culture and business. But, what...

Collage Shark Collage Shark
News5 days ago

Influencer in China Who Cooked and Ate Great White Shark Fined Close to RM80,000

There’s a lot of debate about what animals we humans can eat and what we can’t eat. However, the general...


Latest Videos