Ringgit exchange rate collapses, Malaysia declares national emergency

Ringgit exchange rate collapses, Malaysia declares national emergency – The exchange rate of the Malaysian ringgit collapsed against the United States (US) dollar in trading Tuesday (12/1/2020), after the government declared a national emergency.

Refinitiv released data, the ringgit actually opened trade with a strong 0.25% against the US dollar, but after that immediately fell back to 0.54% to RM 4.072/US$ which is called the weakest level in the last 1 month.

The position is slightly better, at 13:28 WIB it was at RM 4.062/US$, with a remaining weakening of 0.3%. Meanwhile, at the same time, the ringgit weakened 0.16% against the rupiah at IDR 3,478.8/RM.

King of Malaysia, Sultan Abdullah Sultan Ahmad Shah declares a state of national emergency, today. which poses a threat to the country's health system.

"The Covid-19 pandemic in the country is at its most critical stage and there is a need for urgency," said a statement from the national palace, quoted by AFP.

First, Minister Muhyiddin Yassin has asked for the precarious condition to be published in a face-to-face meeting with the King on Monday (11/1/2021).

Yesterday, Muhyiddin announced strict new restrictions in more than half of the state. Also ordered people to stay indoors all but the essentials.

Closure of a large number of businesses in progress. He cautioned that Malaysia's health care mechanism was already "at a breaking point".

Quoting Reuters, the lockdown was carried out in Kuala Lumpur and five other countries for two weeks. This is a series of cumulative issues that touch more than 135 thousand issues per week.

Indonesia also did the same, which put pressure on the rupiah against the US dollar.

The more stringent Large Social Limitation Regulations (PSBB), or what is currently called Citizen Activity Limitation Implementation (PPKM) officially started Monday.

PPKM runs on the islands of Java and Bali early today until January 25. This regulation was applied by the government to encourage the spread of disease due to the corona virus (Covid-19).

In several areas affected by PPKM, non-essential offices are advised to apply 75% work from home. Teaching-learning activities cannot meet face to face at school, still remote.

Source : cnbcindonesia.com

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