© 2008 mervyn

Worrying about MYR

This is the trend of the Malaysian ringgit compared to British Pound Sterling for the last 12 months. If I’m not mistaken, the reason the british pound fell by 0.5 in just ONE month during Jan is due to the Dollar recession. So yay for that time, less to pay for university fees (ignoring inflation).

I checked this out because I want to see how Malaysia’s currency will be affected by the 40% rise in oil prices. I support removal of subsidization actually, but not at such an abrupt speed. Businesses might begin pulling out of Malaysia and move to Brunei, creating less demand for Malaysian currency, ergo depreciation.

The trend above doesn’t really show much, except for going up 0.02 points ever since the announcement. It might be too early to tell… but I’m hoping the MYR doesn’t depreciate by much.

 

*hopes*

4 Comments

  1. jia sheen
    Posted June 8, 2008 at 2:04 am | #

    i dun think govt ever subsidized the exported petroleum rite?

    [Reply]

  2. Posted June 8, 2008 at 2:59 am | #

    but multinational companies which set up factories here benefit from the subsidized petroleum they use.

    [Reply]

  3. Posted June 8, 2008 at 10:26 pm | #

    Fingers crossed this comes out for Econs Sem 1 exam on Thurs :P

    Elyse’s last blog post..Protected: The Endless Chase

    [Reply]

  4. Posted June 9, 2008 at 9:07 am | #

    :D I feel like starting an economics tuition center.

    [Reply]

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