KUALA LUMPUR, Aug 14 – Communications and Multimedia Minister Datuk Seri Dr Salleh Said Keruak said in his blog sskeruak.blogspot.com Thursday about the people can not be simply make a negative conclusions about the depreciation of the ringgit.
“People need to analyze the situation and look to the advantages of disadvantages before making sweeping conclusions and long-term projections would be faced by the country. Whether good or bad, when the national currency decreased depending on how the state can benefit from the situation,” said Salleh in his statement.
“In terms of tourism and exports of course it is good. In terms of foreign debt and import it is the opposite. In the same time, I have also noted that the Chinese currency Yuan which has shrunk by two times in a row among economists who think there is ‘good and bad’ but overall, China will benefit from the yuan is lower,” he said
“And this has led many countries are concerned because the positive aspects overcome the negative and in favor of China. Meanwhile, the Euro was also used by countries such as Portugal, Greece, Italy and Spain and the follow-up of the economic weakness of these countries, the euro was also lower against the British Pound,” said Salleh.
“Among the critics say if the German Mark was used instead of Euro, with Germany’s goods and services will be more expensive than it is now, but since Germany uses the Euro as it gives an unfair advantage and to the rest of the world. In other words, the lower euro is good for Germany which benefited from the situation. Although seen as unfair, Germany has not done anything morally wrong or invalid because that is the way how the system operates,” he said.
The traders said that the ringgit which recently experienced a shrinking trend and it may recovering slightly against the US dollar in today’s early trading session. At 9.30 am, the ringgit was quoted at 3.9900 / 9970 against the US dollar from 4.0375 / 0415 at 5pm yesterday.
