Malaysian Ringgit rate update

[Goatslooter]

May drop by Jb tmr to change some if the rate is good? I think easily 255~256 by now?

[myluckyguy]

Thanks for the useful updates.

[AtlasShrugged]

Originally Posted by Goatslooter

May drop by Jb tmr to change some if the rate is good? I think easily 255~256 by now?

Wait few more days if u not in a hurry..
No need jus drop by JB to change.

[Campro]

Originally Posted by Ninja_Assassin

That's the target level where Najib wants the ringgit to be...... but whether achievable or not oso need to see whether Bank Negara have the financial muscle to support this level?

Najip got money lah....... some people say he is now richer than LKY.

[eg5354]

Originally Posted by batty

S$100 : RM300. I reckon this exchange rate can be achieved by December 2014 and will stay at this rate for a long time. Any comments? I try not to keep so much RM, convert them to S$ and bank them in banks in Singapore.

Yes possible, because recession has already begun for 3 months in south east asia region. We can see that indonesian rupiah is continously depreciating against the sing dollar. The ringgit was also affected badly. Malaysia with such high foreign debt (hutang china and japan alot of $$$) and No foreign reserve, is not strong enough to stabilise the currency.

Every time when ringgit devalue, it tends to bounce back a little. Therefore over a period of time, you will see the accumulation of depreciation becomes quite significant and it is not surprising to expect $1 : 3 ringgit, it is just a matter of time. (fast 2-3 years, slow maybe 5-6 years)

Base on the Sing dollar/Ringgit historical exchange rate below, we notice that almost every year the Ringgit has been depreciating by 7 or 6 or 3 ringgit per S$100 with the exception in year 2007 and 2010. The source is taken from one of the historical exchange rate website base on an average over the 365 days in a year considered as quite accurate.

Average exchange rate
2002 - 2.1236
2003 - 2.1804
2004 - 2.2488
2005 - 2.2759
2006 - 2.3086
2007 - 2.2809
2008 - 2.3545
2009 - 2.4239
2010 - 2.3623
2011 - 2.4332
2012 - 2.4713
2013 (mar-sep) - 2.4914

Do you remember during economic crisis period in year 1998, the ringgit has fallen by about 30 over ringgit per 100 sing dollar. Therefore is not surprising to see when the next recession comes, ringgit will drop by another 10-20 ringgit. From today's internet rate of rm259.4 is just about rm40 away from rm300. Therefore estimate in a few years time, your prediction of 1:3 are likely to happen..

Heard that Msia got many debt to pay up, country may need to print more money to pay off the debts and this in turn may devalue the currency when more money flood the market.

Therefore eventhough place ringgit in malaysian bank in johor provide 3.3% fix deposit interest rate per annum which is higher as compare to placing sing dollar at about 1% fix deposit interest rate per annum offered by singapore banks, the former (ringgit) is subjected to high exchange rate risk. Should the depreciation of the ringgit be quite significant, the higher interest offered may not be able to offset the loss in the exchange rate.

Therefore a word of advice, do not save fix deposit money in ringgit as it may get devalue over time....

[eg5354]

Historical record over 10 over years have already shown that ringgit has gradually weaken against the dollar with no sign of long term recovery, the strengthen of the ringgit is only short term and eventually it has devalued even lagi more as can be seen from 2007-2008 and 2010-2011.

When spore became independent and has its own currency, it started off with almost the same as 1:1. But now it has devalue by 2.6 times.

For people who still have debt in msia like bank loan, etc, rite now is not the ideal time to pay up the loan because the depreciation is still on going, not at its bottom yet. For example if a borrower pay up all his loan to the bank now and found that the ringgit devalue in a few weeks times, he would have made a loss in the exchange rate. Better to wait till the rate gets stabilise first.

That is why there are many sporean buy property in iskandar area e.g. bukit indah, nusa bestari, etc, they rather not pay up one shot but loan over a period of years as they know the ringgit is constantly depreciating and they will benefit from the exchange rate.

[Kinglopi]

People park centre rm256

[Powersex]

Today rate SGD$1= RM2.576

[Greendevil]

Originally Posted by eg5354

Historical record over 10 over years have already shown that ringgit has gradually weaken against the dollar with no sign of long term recovery, the strengthen of the ringgit is only short term and eventually it has devalued even lagi more as can be seen from 2007-2008 and 2010-2011.

When spore became independent and has its own currency, it started off with almost the same as 1:1. But now it has devalue by 2.6 times.

For people who still have debt in msia like bank loan, etc, rite now is not the ideal time to pay up the loan because the depreciation is still on going, not at its bottom yet. For example if a borrower pay up all his loan to the bank now and found that the ringgit devalue in a few weeks times, he would have made a loss in the exchange rate. Better to wait till the rate gets stabilise first.

That is why there are many sporean buy property in iskandar area e.g. bukit indah, nusa bestari, etc, they rather not pay up one shot but loan over a period of years as they know the ringgit is constantly depreciating and they will benefit from the exchange rate.

Bro wat u say make certain sense but apply on case to case basis as any loan, there are interests. Accountant in bank have also factor these in as well.

[gieffee]

Originally Posted by Powersex

Today rate SGD$1= RM2.576

Bro, can share where you get this rate?

[AtlasShrugged]

JB Beside motorbike store 255.50

[IncredibleHulk]

Originally Posted by myluckyguy

Thanks for the useful updates.

Thanks for upz, returned 11 mooncakes to you,

Hulk

[Funzio]

If possible do not use cash as you can get a better rate via credit card.
This morning I sent my bike for some repair works in JB and paid by credit card although the moneychangers next door rates was at 2.56.

I just checked my bank account online and saw they convert my repair bill at 2.571

[eg5354]

Originally Posted by Greendevil

Bro wat u say make certain sense but apply on case to case basis as any loan, there are interests. Accountant in bank have also factor these in as well.

Bro concurred with you, sporean property investor in Johor indeed has to do their maths calculation as to compare the difference between the housing interest loan package offered by their bank and the depreciation of the ringgit before they made a sound decision on the loan amount and repayment period.

But due to the strict measures introduce in spore last year to control and stabilise the property market price and prevent speculation of private and public housing, sporean has turned to investing in johor bahru instead like iskandar area for example setia tropica, bukit indah, nusa bestari, setia indah, etc... as JB readily welcome sporean to buy house in msia and grant them msia my 2nd home status which mean they can retire in msia with a very long term pass of 10 years and can be renewed upon exipry for another 10 years and so on so forth.

With a large increase of sporean buying property in JB has resulted the property price in johor bahru just over past 3 years had shockingly increased by few hundred percent or few times more. My relative bought a terrace house for just about 230k ringgit 6 years ago from one of the developer but now the minimum price to get a new terrace house from developer is about 600k ringgit above already.

Why JB property price for the past 30 years never have any significant increase but the last 3 years has rocketed up to an unbelievable level is because of the strong demand of landed property by sporean buyers. However, the effect will probably be johorian who work in JB, may feel difficulty owning a landed house in future as the price of the property keep escalating...

Same theory applies to currency. Read article news recently that there is alot of selling of the ringgit by foreign companies and this could be one of the reason the ringgit is falling....

correct me if the above point is wrong....

[diputs1269]

Last night both Chinatown point and Peoples Park Centre RM256.50