Guess what, folks? Our Malaysian Ringgit just had a major flex against the US Dollar!
It hit a new high, reaching a whopping RM4.1789 against the US Dollar. That’s a big deal, especially if you’ve got plans to travel or shop overseas.
This should mean cheaper gadgets, more affordable vacations, and even lower prices for imported goods (in theory).
Of course, it’s not all sunshine and rainbows. A stronger Ringgit can also have some downsides, like making exports a bit more expensive.
But for most Malaysians, this is definitely good news.
Today’s rate marks the strongest level the ringgit has been since July 2021.
4.17 MYR to 1 USD
First time since July 2021 pic.twitter.com/QfInA3LIzV
— Hadi Azmi (@amerhadiazmi) September 20, 2024
This development reflects the positive trajectory of the Malaysian government’s economic policies.
“Today, the ringgit reached RM 4.19 against the US dollar. This demonstrates that the unity government has, in a short period, managed to shift global perceptions of our economic fundamentals after the launch of the Madani Economic Framework, the New Industrial Masterplan, and the National Energy Transition Roadmap last year,” said Minister of Communications Fahmi Fadzil, as reported by NST.
Fahmi also noted that the Malaysian currency strengthened earlier than expected, signalling promising economic prospects.
Minister of Housing and Local Government, Nga Kor Ming, also took to Twitter to celebrate this achievement, encouraging unity among Malaysians.
“Let all Malaysians unite under the Madani government, led by YAB PMX, to open a new chapter and make Malaysia a country respected and admired on the global stage,” he tweeted.
Salam Malaysia Madani.
Masa utk Malaysia bangkit semula kini sudah tiba.
Marilah kita seluruh rakyat Malaysia bersatu dibawah payung kerajaan Madani pimpinan YAB PMX @anwaribrahim utk membuka lembaran baru menjadikan Malaysia negara yg dihormati dan disanjungi di pentas dunia. pic.twitter.com/PP9hfw2bP0
— Nga Kor Ming (@NgaKorMing) September 19, 2024
Possibility of falling below RM4
According to economists, the ringgit could strengthen even further, potentially falling below RM4 against the US dollar in the near future.
The recent 50-basis-point rate cut by the US Federal Reserve is expected to narrow the gap between the Federal Funds Rate and Malaysia’s Overnight Policy Rate, making ringgit-denominated assets more attractive to investors.
Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, believes this could spur further gains for the Malaysian currency.
