Winners and losers as the Ringgit falls


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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