Ringgit down amid fears raised by ‘instant’ experts

(Bernama) – The emergence of unqualified “instant” economic experts on social media, who have linked the fall of the national currency with the current political situation, has raised much concern among the people, according to an academician.

National Professors’ Council, Economics and Management Cluster committee member Prof Razli Che Razak said the ringgit seemed to depreciate as the value of the United States dollar had gone up.

“Nowadays there are many economic experts, spreading anxiety regarding the fall of the currency not based on facts, but relate it to national politics.

“Actually, the fall of the ringgit is not associated purely to political reasons but the fall in oil prices and foreign exchange players, too, play a part,” he said when contacted here today.

This occurred in all countries which have trade relations with the United States such as Australia and New Zealand, added Razli.

The Universiti Malaysia Kelantan registrar said what worsened the situation was when these “instant” economic experts who have no expertise on foreign exchange, associated the fall with confidence in the nation’s politics.

Meanwhile, Universiti Malaysia Sabah, School of Business and Economics lecturer Prof Dr Syed Azizi Wafa Syed Khalid Wafa said to stop further speculation which could affect the image of the government, the relevant parties such as Bank Negara should provide information at the grassroots level.

“Explanations should be based on facts to calm public fears and halt rampant speculation,” he said.

He did not rule out the possibility that traders would raise the price of goods although it had nothing to do with imports.

Malaysian Malay Entrepreneurs and Merchants’ Association (Perdasama) president Moehamad Izat Emir said there were no rumours on the impending price increase of goods, especially imported goods, following the currency situation.

“From my observation, traders are selling their goods at the regular price and some are selling them cheap to clear existing stocks,” he said.

However, he urged traders to do business with countries with weaker currency so that goods would not be sold at a higher price.

At 5pm, the ringgit closed lower, at RM4.04 against the US dollar from RM3.96 yesterday.