PETALING JAYA: According to Datuk Seri Dr Wee Ka Siong, the value of the ringgit is influenced by various factors such as export demand, foreign investment, gold reserves, foreign currency reserves, and confidence in the government. In a Facebook video shared on Tuesday (March 12), the MCA president delves into the intricacies of currency value determination and the functioning of the global economy. The video is aimed at simplifying these complex concepts for the general public, shedding light on how the ringgit reached its current record low.
During the six-minute and thirty-second video, Dr Wee elucidates how the concept of currency evolved over time and how its value, once linked to gold, is now dependent on a range of factors including a country’s export demand, foreign investments, gold reserves, foreign currency reserves, and international confidence in a government.
Reflecting on recent fluctuations in the ringgit’s value, Dr Wee recollected the period before 2018 when the exchange rate with the US Dollar stood at RM4.30, contrasting it with the current rate of RM4.80. He acknowledged that attributing the currency’s decline solely to the government is unjustified, considering the various other factors at play.
However, he also highlighted it as a learning opportunity for those who believed that political changes would automatically lead to an increase in the ringgit’s value, cautioning that such simplistic views are akin to “spitting into the wind.”
