The value of Ringgit Malaysia (RM) is decline? Nowadays, Various reactions that we hear on the economic situation of the country since lately. Gst become the famous issue in our country since it was introduced by the Prime Minister. What is the Gst? A goods and services tax in Malaysia (GST), a value added tax, was scheduled to be implemented by the government during the third quarter of 2011, but the implementation was delayed until 1 April 2015. Its purpose is to replace the sales and service tax which has been used in the country for several decades. GST has been applied in Singapore but we did not hear any dispute or ridicule of the media Singaporeans. Lately the focus of the financial markets. We see the value of Ringgit Malaysia (RM) is declining against foreign currencies like the US dollar and Singapore.
Reason why Ringgit Malaysia is decline :
- When we buy too much stuff we dumped imports Ringgit in the international market, if this is the case of the Ringgit will fall.
- Political stability is one of the factors to the stability of the economy in the country.
Ways to increase the value of the Ringgit in the world arena :
- As citizens we have also a role to be taken. Buy Malaysian products and subtract buy imported goods to increase and strengthen the economy.
- To stabilize the ringgit, the government through the Bank Negara Malaysia (BNM) may be diluting the international reserves.
- Together we stand united, so that the political situation is stable. This will help ensure the success of any policy that would be taken by BNM to stabilize the ringgit in the international market.
United States (US) Federal Reserve through monetary intervention to take steps to stabilize the value of the dollar in international markets.That is one reason why the US dollar (USD) to gain a foothold against our country. As the world's largest economy, the US will do anything to increase the value of the dollar in the world.
Singapore is also an intimate friend of the US do not want to be seen lagging behind that of his close ally. Obviously they want to see a stable Singapore dollar against the US dollar, thus Singapore withdrew their international reserves. As a result we could see a strong Singapore dollar while the US dollar and of course Singapore dollar jumped higher than the Ringgit. This does not mean that Singapore's economy is better than the economy.
China is a lot of trade with the United States is not left behind monetary intervention, dilute the country's international reserves to stabilize the value of the yuan in the international market. China does not want him to be far behind compared to the importance of US counterparties. - Decorative Figure
-Student's research :)
No comments:
Post a Comment