Ringgit Touches RM4.46 To US Dollar. Bank Negara Please Dont Waste Forex To "Stabilise" Ringgit.

 

Folks today July 26, 2022 the Ringgit touched a low of RM4.46 to the US Dollar. Going at this pace some folks say we may reach RM5.00 to the US Dollar by end August 2022.

To the Makcik in Bank Negara, please do not waste our Foreign Reserves to help stabilise or strengthen the Ringgit. You will be burning our Forex resources with no positive returns. 

The Ringgit is depreciating against the USD when the USD itself is weak. This is a double whammy. Plus oil prices are still high - although they are dropping a little (US96/barrel WTI). 

This time I dont see a stop to the slide in the Ringgit. If it reaches RM5.00 to the USD, then it can go beyond that as well.

Just as much as we are an exporting nation Malaysia is also a huge importing nation. All the costs of imports will go up. Then prices of things sold inside the country will also go up. This is called imported inflation.

One way to mitigate is to buy more stuff from countries whose currencies have depreciated more than our Ringgit. Turkey's lira for example has crashed even more. Maybe we can import Turkish Delights and that Bayraktar missile shooting drones. 

Our economy, like the rest of the country, is in serious trouble. The fools do not know that. Not only do they not know that but they do not know that they do not know.  They really think that they are on the correct path. And if they fail well it is because of conspiracies - Chin Peng, Zionists, the West, Christians, the local Chinese, the DAP, orang tengah or middlemen (aka also Chinese)  are all conspiring  to destroy our precious economy.

So by conspiring to destroy our economy, the Chinese (for example) plan to become even more richer !! 

So by conspiring to destroy Islam and Muslims the West (for example) which sells so much goods and services to Muslim countries, plans to become more richer !!

You become richer by destroying the markets that buy your goods and services? This is auta economic theory again.

To all right thinking people here is my advice. Preserve and conserve. Preserve your skill sets - whatever they are. And improve on your skill sets. Conserve your expenditure. Hold on to good assets like property and gold. If you invest in shares look at foreign economies like China and Vietnam which are stable.

Some foreign currencies are stable like the Singapore Dollar, the Yuan. I dont know about the US Dollar. 

Dont worry about gold. No matter what the price of gold (up or down) dont worry. Gold is not only a store of value but it "captures" value very well. If the price of gold goes up, most likely the prices of all other things will also go up. If gold price goes down the prices of other things will likely go down as well. 

Our country is certainly on its way down. But the fixes required are so easy and simple. I have said this many times before - it is so easy to fix all our problems. But sadly we may have to crash first before we get back on our feet.  

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.