Ringgit finally unpegged!! Good or bad?
The exchange rate for RM to USD may go down, rendering the USD cheaper. Goods from US will be cheaper and I can finally get those books I'd longed for. Oil will be cheaper if we're talking about buying in the USD.
However, other countries may jack up to avoid the loss. China also unpegged and this may cause China's goods to be more expensive. We may actually lose out because most of the things are made in China, like Nike. Bank Negara has also said that the exchange rate may not deviate much from the time of being pegged. It will be managed against a basket of currencies. So, we'll just have to wait for 24 hours to see how the Forex will be.
The question is : why can't we let our RM be free of the control of agreements between trade partners? That way, we could generate a more realistic trade setting and shake off a bulk of currency occupation by the Northern countries. It may seem old fashion but it is the long-sought after goal of this country. On the other hand, it may seem sensible to give in to certain demands as our economy is just on the verge of being mature.
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