- The Malaysian Ringgit declined sharply in the past month as the 1MDB scandal intensified and Malaysia’s prime minister responded by reshuffling his cabinet.
- Investor confidence in Malaysia has been eroded; the Ringgit is the worst performing Asian currency over the past 12 months.
- Weak oil prices also increased fears of higher fiscal deficit for 2015 and concerns over Malaysia’s rising external debt
- Institutional investors are fleeing the Ringgit due to low Malaysian central bank reserves and fears of capital control being implemented like in 1998 during the Asian Financial Crisis
Chart: XE.com
The MYR has gradually declined over 20% against the SGD over the last year but ......