Oh dear. Ringgit vs other currencies, up or down?

Oh dear. Ringgit vs other currencies, up or down?

Suddenly, we have good news about Ringgit. Okay, actually there has been some good news here and there within the past few weeks. However, suddenly every media is reporting good news about Ringgit yesterday (12 July 2024). Here are some of them:

Was Ringgit SO BAD if we compare to other currencies over past 5 years?

I think I have been hearing so many people always saying Ringgit is the ‘worst in the world?’ Every now and then, everything also blamed on the Ringgit. Business no good, Ringgit…Things getting expensive, Ringgit… Anyway, let’s look at real numbers yeah. No need comment too much, just look at actual fluctuations for major currencies versus Ringgit.

We look at the few major currencies first, okay? Then only we look at our neighbours. All information is as at 13th July 2024 and using xe.com

Versus the Japanese Yen, we can see Ringgit has appreciated significantly.

I know, people will say that’s because the Yen depreciated. Haha. Yes, I think they are right. Every time the USD gains in strength, they chose to ignore this and prefers to say the Ringgit kept going down. However when Ringgit is going up versus Japanese Yen, then they say that’s not due to ringgit moving up but Yen going down. Haha… to these Malaysians in particular, you are a joker!

USD has gained versus Ringgit. This fact no one can doubt. Within the past 5 years, they have gained 14 percent. That’s over 2 percent every year. So, if we are going to the US for vacation just note that our purchasing power there has reduced by 14 percent yeah.

The UK Pound has also gained versus the ringgit over the past 5 years. Perhaps them exiting Brexit is an amazing decision? (I don’t think so and I think it will haunt them for years to come). Thus, if you are thinking of sending your children to the UK for their tertiary education, take note that it’s harder today versus 5 years ago. Just need to note that when I graduated in 1998, Pound to Ringgit was higher than current rate. So, if we stretch to 1998, the Ringgit has performed better…

AUD has gained versus the Ringgit if we stretch this over 5 years. Thus, if we are thinking of a vacation Down Under, our currency is under-performing yeah.

Euro has gained versus the Ringgit too. Well, Germany is still a country I think highly.

Now let’s look at Ringgit versus our neighbours

RM gained very slightly versus the Thai Baht within the past 5 years. Once upon a time, were Ringgit even better? Yeah, I remember the 1 to 10 days too. However, past 5 years, we are not too bad versus Baht.

Against the Indonesian Rupiah, we are also almost the same, very slight gain over the past 5 years. I have always remembered it was 1 to 3,300-3,500 for a very long time. So, I think this has not changed a lot too.

So is everything all bad previously when Ringgit was ‘very bad’?

Even today, when we look around, we have restaurants who are opening, we have restaurants which are thriving and it’s hard to find a table and at the same time, we have restaurants which are closing down or on the way to closing down. In my recent trip back to Ipoh, I went to Kedai Kopi Sun Yuan Loong on Saturday morning and it was full of people and my mum and I had to wait for a few minutes for a table.

On Sunday, I went to GP-Bercham Golden Point Food Court and saw that only 1/3 of the stalls are operating in the morning. No wonder tables were empty and aplenty. Perhaps they will open for lunch, I have no idea. In the afternoon as I was driving out to buy lunch, this shop Sam Ma Restaurant with their famous chicken rise has a queue outside the shop! It’s either the shop is too small or the customers are too many.

Ringgit up or down… life goes on yeah. Continue to find opportunities, continue to invest and continue to work harder and get the promotion you deserve!

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