1. Malaysians, including Malaysian monetary authorities seem quite happy over the appreciation of the Ringgit against the US Dollar. We think that when our currency strengthens it must be because our economy is strong, Therefore we are doing well.
2. But are we doing well? Is it the Ringgit which is appreciating or is it the US Dollar which is devaluing?
3. Actually it is the US Dollar which is devaluing. It is devaluing against most other currencies, especially against China’s currency.
4. Why is the dollar devaluing? Could it be due to the currency traders selling dollars? Could it be because the balance of payment is not in US favour?