THE VALUE OF THE RINGGIT FALLING ppt.pptx

May 31, 2018 | Author: booshen | Category: Reserve Currency, Foreign Exchange Reserves, United States Dollar, Price Of Oil, Prices


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THE VALUE OF THERINGGIT FALLING CREATED BY: KIRTHANA, DARSHINI,PAVISHAA,VALARMAT HI AND MAITHURI 0025 against the dollar .7743 On 9 June 2015. the ringgit had dropped to its lowest level in 16 years  on 12 Aug 2015. fell to lowest value against the Singapore Dollar  on 6 July 2015. the ringgit fell to Rm4. the ringgit dropped to 3.4455  in the 1st quarter of 2015.INTRODUCTION  before closing on 3 Dec 2014. the ringgit’s value continued to weaken  on 8 June 2015. the ringgit dropped to as far 3. 4% to 3.4300 to the US dollar  on 12 June 2015. the ringgit had dropped for 4 consecutive weeks  the ringgit has become Asia’s worst performing currency  last year. 2nd worst performing currency in the region  investors continue to scale down their exposure to Malaysia assets .  on 1 Dec 2014. falling 2.HOW BIG WAS THE DROP AND WHEN DID IT START  the ringgit started falling in late 2014. the lower value oil . Malaysia’s 1MDB debt have gained global attention  In July 2015.ISSUES…  Firstly. prospect of the US increasing its interest rates. . media reports that our PM’s personal accounts were involved in the transfer of USD700 million of 1MDB  Thirdly.  Oil is one of Malaysia’s main exports  declining price of Brent crude oil of 38%  Secondly. WHAT CAUSED THE DROP IN OIL PRICES?  the supply has been exceeding demand  the price of Brent crude oil has now fallen to a 4 year low  OPEC. has so far declined to cut back on its production of oil . 49 per dollar  the ringgit would continue to fall until oil prices stabilize  June 2015. the Financial Times reported that some banks have predicted the ringgit will sink as low 3.38 per dollar to 3.7050 per dollar  In July 2015. central bank governor DR Zeti Aktar Aziz believed the weakening currency to be a short term problem  on 19 June 2015.38 . ringgit pulled back against the US dollar .WHAT ARE THE PREDICTION FOR THE RINGGIT?  ringgit forecast from 3.its value rising 3. HOW DOES THE FALLING RINGGIT AFFECT MALAYSIA’S CURRENCY RESERVES?  Large amounts of currencies held by governments as part of their foreign exchange reserves  examples. paying for imports and paying off foreign currency debts  pricing currencies for globally traded products  countries will keep different reserve currencies  US dollar is a dominant reserve currency . WHY ARE MALAYSIA’S RESERVES FALLING RIGHT NOW?   Bank Negara Malaysia has been intervening to help slow down the rate by buying and selling foreign reserve currency  example slump oil prices and US interest rate  1MDB scandal are also affecting investors’ confidence . POSITIVE ANS NEGATIVE EFFECTS OF THE RINGGIT’S FALL  Increased price of goods and services •  GST imposed on the things you love • Increased cost of imported goods will be reflected on price tags • Disdain over the price imported fresh goods Inflation • cost of imported goods will increase as mentioned early • Domestic product forced to sell their goods on high price . CONTINUE…. there is no better time to visit Malaysia as the weak ringgit gives you more value for your money .   Reduced purchasing power • when the price of goods and services increase. but your income is not • increased cost of goods does not permit you to spend freely Exports growth •  international markets will find weak ringgit beneficial as they enjoy higher sales volume Tourism boost • weaker ringgit as it grants them a higher purchasing power • Singaporeans who enjoy a quick gateway to Malaysia would like be the prime benefit • For foreigner. CONCLUSION  Many Singaporeans might be delighted because their weekend shopping trips to neighbour JB are now cheaper.  weak Malaysian economy is bad news for Singapore as our largest trading partner.  Malaysia’s easily problem are deep rooted and will not be solved .
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