It's Not the 'Trump Effect', but the 'Najib Effect' Stooopids!

The ringgit closed lower against the US dollar today as it is still feeling the impact of the Donald Trump’s US presidential election win, a dealer said.

At 6pm, the ringgit was traded at 4.4600/4650 against the US dollar from 4.4530/4600 on Friday.

Second Finance Minister, Datuk Johari Abdul Ghani, said Malaysia has no option but to face the current volatility of the ringgit while focusing on enhancing its economic fundamentals.

“The US needs money and funds. Americans have been investing overseas and it is estimated that about US$2-US$3 trillion of their investments are in Asean countries.

“To bring back the money, the US will raise interest rate and when this happens, our interest rate will become not so attractive,” he said. The further decline of the ringgit was worsened by speculative activities in the offshore market, he said. The ringgit was traded mostly lower against other major currencies.

Our comment

It’s the corruption Stoopid.

That’s the elephant in the room that all those analysts are so politely trying to find ways to talk around.  If ‘the Trump effect’ was the real reason for Malaysia’s problems it would not be doing so much worse than all the other currencies, despite the fact that Najib’s tame new Governor is throwing the country’s reserves at trying to prop the currency up and lecturing banks on not selling.

How can there be any confidence in a currency that represents a country which is being plundered by a bunch of corrupted and out of control politicians, who make up the law as they go along?

The Economist told the truth in it’s leader last week called ‘Falling Down – Malaysians underestimate the trouble their country is in”

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