Monday, February 18, 2019

Essay --

How to Increase the Value of Malaysian RinggitBased on our findings, we reached into the conclusion that there a two significant ways to improve, modify and probably increase the value of Malaysian Ringgit internationally. First, the government should maintain the insurance of coarse economy and also considering the usage of gold dinar in the currency system instead of fiat monetary system. Maintain the polity of Open EconomicMalaysia is a small and unresolved economy which elusive heavily in international share. The scotch theory suggested by Dornbush (1974) highlighted that the excreta of tariff (greater trade openness) will cause currency depreciation by reducing the price of exportable goods and increase the price of importable goods.Since the results showed that open economic policy can cause the depreciation of RM/USD, Malaysia should maintain the policy of open economic. Open economic policy has successfully raised Malaysia position in the international trade. Currency depreciation increases the competitiveness of Malaysia exporters and encourages domestic producer and importer to act into cost effective production mode to save costs. Although increase in Malaysia trade rest period tends to depreciate RM, but the control of Malaysia on the trade balance is limited as the increase in trade balance depend on the buy power of the foreign importers and the competitiveness level too.Results also indicate that increment in domestic interest identify will dampen our exchange rate and increase in bills supply, on the other hand, strength the RM. This finding shows that monetary policy is a useful tool in controlling the movement of Malaysian Ringgit. small-arm increase in the interest rate could cause further capital inflows tha... ...ry. The three main factors are the use of gold and silver as a currency, to avoid currency devaluation, and to limit printing of loose funds (fulus).In addition, manipulation of currencies and the impact toward one economy could be reduced because of the fact that gold does not inflate in value as it is a commodity and, thus, has an intrinsic value. Dr. Mahathir Mohamad said that gold was also open to some risk of speculation but it was safer than conventional currency which had no intrinsic value and could be manipulated indefinitely (The Star, 2002). All these problems arise because the solid ground went off the aureate Standard. In the International Conference on Gold Dinar Economy 2007, Tun Dr Mahathir noted that in the case of paper muckle will have risk in losing their value and also purchasing power. He stressed back that only Gold Dinar rattling has a value in it.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.