MARC: Ringgit at unprecedented low

PETALING JAYA: The weakening of the ringgit has reached an unprecedented low if seen from its real effective exchange rate (REER), Malaysian Rating Corp Bhd (MARC) says, citing data from the Bank of International Settlements (BIS).

Defining REER as a measure of the exchange rate value weighted by trade and adjusted for inflation, MARC explained that on one hand, a fragile ringgit could mean that exports from Malaysia are now cheaper relative to history and to its peers, on the flipside it also implies that imports are increasingly more expensive, affecting businesses and consumers.