1. The Ringgit is depreciating against the USD.
2. It is now worth less than the depreciation during the Financial Crisis of 1998.
3. Where before we needed RM 3.80 to buy a dollars’ worth of imports, now we need RM4.70.
4. Depreciation makes us poor.
5. Continuous deprecation undermines the value of investments in shares or project.
6. Depreciation lead to dumping of shares and investments by foreign investors.
7. It leads to selling out the shares.
8. This is turn leads to more depreciation of the Ringgit. Loans taken in USD cost more to service and repayment.
9. Manufacturing cost will go down but any upward revision in wages will negate the lower cost of manufacturing.
10. Once a currency depreciates it will never recover its previous value.
11. Devaluation will lead to higher cost of living.
12. Eventually the local currency would be rejected and USD would be used in payment of hotel and restaurant bills.
13. Local currency would be rejected for all payments even for sales of valuable items.