A lot of people say Malaysian Ringgit (MYR) currency is not strong and will be depreciating in long run and it is better we convert to foreign currency if we want to maintain the value. Is that true? So I dig a little bit research on the MYR currency trend in the past 10 years for your reference here.
The following graphs show you how much 1 MYR can be converted to foreign currency in the past 10 years. I list down the countries that I"m interested in. If the trend goes up, it means MYR currency is stronger and vice-verse.
AUD (Australia $) per 1 MYR
USD (United State $) per 1 MYR
EUR (Euro) per 1 MYR
GBP (British Pound) per 1 MYR
Well if you look at the starting point and ending point of these graphs, MYR currency is either stay stable or appreciate. To AUS and EUR currencies , MYR currency is stable. To USD and GBP, MYR currency is doing good (mostly due to subprime crisis I think).
Let's continue to see our neighbors...
HKG (Hong Kong $) per 1 MYR
SGD (Singapore $) per 1 MYR
CNY (Chinese Yuan) per 1 MYR
TWD (Taiwan New $) per 1 MYR
KRW (South Korea Won) per 1 MYR
IDR (Indonesian Rupiah) per 1 MYR
Compared to all our neighbours, MYR currency is doing good in the past 10 years except for for CNY (so, my previous prediction on RMB/CNY is correct? lol) and SGD. We only lost to these 2 countries. :)
I"m not expert in Forex but just want to emphasize the perception on MYR currency has no value (or depreciate) in long run may not be true at least based on the past 10 years data, MYR currency is doing fine. Well, you can shorten to 5 years, it is not that great as 10 years but it is still considered okay in my opinion.
If you are really scare and don't trust MYR currency, it seems like CNY (Chinese Yuan) or SGD (Singapore Dollar) is the currency that you want to convert to based on the past 10 years trend above.
So, is Malaysia (MYR) currency strong? I think yes based the past 10 years. Just only 2 countries are doing better than Malaysia which is Singapore and China, I will consider that is doing quite good already. Agree?