Ringgit Depreciation In Perspective

This is from June 2014 to December 2014, and to February 2015 (% appreciation of USD; sorted based on the latter date; click on the image for a larger version):

The Ringgit is in the top half of the list, but just barely. Most of the bottom half are currencies pegged to the USD (i.e. from Honduras down to Saudi Arabia), while most of the top half are mostly European and pegged to the Euro. Not all currencies are on the list, but these exceptions are also mostly pegged currencies (most of the Caribbean and Africa for example).

Some people have been calling on the Governor to resign due to the deterioration in the USD value of the Ringgit. I don’t think Tan Sri Zeti is worse than the Governor of the Central Bank of Sudan. It’s clear from here that the sell down of the Ringgit is at worse only partially due to local factors, and much more to do with a strong global rotation towards the USD.

So much for “worse performing currency” and “foreign investors leaving due to lack of confidence in the economy”.