SATURDAY LITE : FALLING RINGGIT, IS IT A ZIONIST AFGHAN CONSPIRACY?

 Here is something from Norman Fernandez. Norman says that the Malaysian Ringgit has also been falling against the Afghan currency (its called the Afghani, what else) and also against the Israeli Shekel. 

Maybe there indeed is a combined Jewish-Taliban Conspiracy to bring down the Ringgit.

Here is more analysis on the weakening Ringgit by Prof Murray Hunter.  I have truncated it for easy reading.

Why is the Ringgit falling?

Economics doesn’t always provide precise answers
Murray Hunter
Feb 24   

• Ringgit fallen 4.8% and not even end of Feb
• Ringgit briefly touched 4.80 to USD
• lowest in Sept 98, it reached 4.8850 to USD
  

Can Bank Negara Malaysia please explain why : 

• Ringgit is largest falling currency in the region
• despite all countries facing same external factors?
• despite Malaysian  advantage over other countries 
• despite exporting RM28.7 billion oil in 2023?

Msia’s exports going down over last 10 months
difficult to see where 4-5% projected growth will come from
eroding Malaysia’s trade surplus 
down to RM 10.12b in Jan
capital outflow of RM 54.76b over 12 months

• madani appears to be in panic mode
• weak Ringgit will further fuel inflation 
• M'sia imports 60% of its food needs

What is the possible reason Ringgit is falling?
2024 budget record deficit, adding to public debt
if slower economy then tax revenue less than budgeted
projected RM 82.6b deficit could be larger than forecast

• large growth in M3 money supply over last quarter 
• more Ringgit circulating means decrease in value
• This is inflationary, influence external value of Ringgit
• drastically cut govt spending in immediate future 
• stem growth of money supply accordingly    
  

• Reducing public debt is responsible govt  
• will give investors confidence in Ringgit
• falling Ringgit direct result of hesitancy in reforms, fiscal prudence 

 

My Comments :

So the Malaysian Ringgit is even falling against the Taliban currency.
What do you think will the gomen do?
Anyone wants to guess?
Who will they call?
Which ghostbusters will the gomen call?
Will they call the World Economic Forum?
Will they call the Muslim Brotherhood?
Who you gonna call?

 

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