Three considerations for the ringgit

Under control: A money changer in Ampang, Selangor. The government must act quickly to restore the people’s and investor confidence that it is able to manage the impact of the ringgit’s depreciation on the economy, businesses and households.

SINCE the ringgit was de-pegged in 2005, it had depreciated by only 1% per annum to end the year 2023 with an average exchange rate of RM4.5605 against the US dollar compared to RM3.7871 in 2005.

Throughout the 18 years (2005-2023), the ringgit had strengthened in seven years: 2006 (3.2%; RM3.6682 per US dollar), 2007 (6.7%; RM3.4375), 2008 (3.1%; RM3.3333), 2010 (9.4%; RM3.2211), 2011 (5.3%; RM3.0600), 2018 (6.6%; RM4.0351); and in 2021 (1.5%; RM4.1433).