Ringgit Rallies Bites Malaysian expats hard~!

On a journey of life in
 the Middle East

For Malaysians working abroad, and sending money home to Malaysia to meet financial committments, the strengthening of the Ringgit is not good news. Take my case, when I started on this new job in Saudi in 2009, for every SAR1000 I sent to Malaysia, I was gettting about RM970.00.

Now, on todays, exchange rate, my SAR100 is only worth RM800.00.

For Malaysians working in Saudi who started in 2009 or before, this is equivalent to a pay-cut of nearly 20%!

Therefore, for Malaysians in Malaysia currently considering to take up job offers overseas, please take into consideration the effect of exchange rate on your net disposable income - if you are planning to earn money to pay for expenses incurred in Malaysia.

But alas...returning to Malaysia is also not a favorable option at the present time. The political scenes and state of play has gone down-hill and has become a real put off for many. It is down right low! The way the politicians are now manipulating the latest 'sex video' scandal is repulsive, to put it mildly.

Please see below the report from Bloomberg today.

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Ringgit rallies to near 1997's high!
Malaysia’s ringgit approached its strongest level since 1997, before a report this week that may show inflation accelerated the most in 22 months in February, adding to speculation that the central bank will allow further appreciation to cap price increases.

The currency rallied for a fifth day, its longest winning streak in a month, as military conflict in Libya and political turmoil in the Middle East kept crude oil prices above $100 a barrel. Bonds declined before a government report on March 25 that may show consumer prices in Southeast Asia’s third-largest economy climbed to 2.7 per cent last month from a year ago, from 2.4 per cent in January, according to the median estimate of 17 economists in a Bloomberg news survey.

“The pressure on inflation has been building, which may require a policy response soon,” said Choong Yin Pheng, manager for economic and fixed-income research at Hong Leong Bank Bhd in Kuala Lumpur. “The ringgit can benefit. It will be a gradual process.”

The currency advanced 0.2 per cent to 3.0290 per dollar as of 4:05 p.m. in Kuala Lumpur, according to data compiled by Bloomberg. The ringgit has rallied 1.2 per cent since March 15 to near its 13-year high of 3.0240 set on Feb. 21.

Asian currencies climbed for a fourth day as stocks rallied as concern about Japan nuclear-plant disaster ebbed after Prime Minister Naoto Kan said yesterday there’s “light at the end of the tunnel.”

Bank Negara Malaysia will release its 2010 annual report tomorrow, which will detail the economy’s performance and may include forecasts for this year. Policy makers said on March 11 that domestic prices are expected to continue to rise, “driven by significant increases in global commodity and energy prices.” --

Bloomberg