The slide of the Ringgit affects Malaysian households and businesses differently. The implications are complicated, no doubt, but there are winners and losers nonetheless.
China’s Yuan devaluation prompted a global sell-off in emerging markets’ currencies – a domino effect that saw the Malaysian Ringgit drop to its lowest level since 1998 at 4.2490 against the US$ on August 27. This was accompanied by Bank Negara's foreign currency reserves, which fell to US$94.5bil as of August 14 – the first time it has fallen below US$100bil since 2010.
But who’s making a buck?
Exporters, for example, are among the winners. Companies with substantial US$ export revenue and whose costs are in Ringgit benefit from a weaker local currency.
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