Confidence in ruling government a factor in value of the ringgit, says Dr Wee
PETALING JAYA: The ringgit's value is intricately tied to factors such as export demand, including tourism and trade, foreign investment, gold reserves, foreign currency reserves, and confidence in the government, says Datuk Seri Dr Wee Ka Siong.

In a Facebook video posted on Tuesday (March 12), the MCA president explains how the value of a currency is determined and how the global economy works. The video aims to explain to the layperson how the ringgit got to its current all-time low.

In the six-minute and thirty-second video, Dr Wee lays out how the use of currency came to be and how the value, which was once tied to the value of gold, is now tied to a more complex web of factors such as a country’s export demand, foreign investment, gold reserves, foreign currency reserves, and international confidence in a government.

Reflecting on recent fluctuations in Malaysia's currency value, Dr Wee reminisced about the days before 2018 when the exchange rate with the US Dollar was RM4.30, compared to the current RM4.80.

He acknowledged that blaming the government solely for the currency's fall is not justified, considering other factors at play.

However, he said that it is also a lesson for those who claimed "Najib jatuh, ringgit naik," (with Najib’s fall the ringgit will rise) or attributed political issues to currency value, ans akin to "spitting into the wind," he added.
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PETALING JAYA: The ringgit's value is intricately tied to factors such as export demand, including tourism and trade, foreign investment, gold reserves, foreign currency reserves, and confidence in the government, says Datuk Seri Dr Wee Ka Siong.