Ringgit Malaysia Case Study

Recommendation :
1) Economic stability :

To enhance the Malaysia foreign direct investment to other countries, the currency value of the Ringgit Malaysia is the primarily consideration of the Malaysia’s entrepreneurs. If the currency of ringgit Malaysia is in a good sign, it will encourage Malaysia entrepreneurs to invest to other countries. To the contrary, if the Malaysia Ringgit fall will cause the Malaysia’s entrepreneur perish the thought of foreign direct investment to other countries because of the Malaysia Ringgit fall will cause them to pay more to the foreign investment. The stability of economic in a country can be a factor that affected the value of Malaysia Ringgit goes up and down. The stability of the economic in a country …show more content…
Since we know that the heavy loan will cause the economic stability fall, Malaysia companies should slow down or ease their loan from the center bank. For example, 1 Malaysia Development Berhad stop or decrease their loan from the center bank. This action will effectively control the Ringgit Malaysia Exchange rate dropping continuously. After implemented this action, the stability of economy will become more stable and gain back the confidence of investor toward the currency and avoided the investor selling the local currency. The Ringgit Malaysia will not experience it value goes down again if the investors hold the local …show more content…
A fixed exchange-rate system can also be used as a means to control the behavior of a currency, such as by limiting rates of inflation. However, in doing so, the pegged currency is then controlled by its reference value. As such, when the reference value rises or falls, it then follows that the value(s) of any currencies pegged to it will also rise and fall in relation to other currencies and commodities with which the pegged currency can be