Government - where and how to find a few extra ringgits in revennue

 

 

Manipulation of country’s official exchange rate helps the country to earn extra local currency when the country is a net exporter of raw materials Crude oil , Petroleum gas, rubber , tin , Palm oil and others when sold in international markets , the selling price is in US Dollars. When US dollars are remitted back to country, best to weaken the local currency and there you go a magical extra amount of local currency. This helps the government revenue collection.

 

 

Once gets addicted to it, it is very difficult as it takes governments will and political power to strengthen the local currency. If this is done then less local currency for the US dollars remitted back to the country.

 

This is why our ringgit got detached with Singapore currency, because Singapore did not see the benefits of a weak local currency against US dollars as Singapore do not have natural resources to sell in the foreign markets but Malaysia had the newly found oil and gas to sell, been greedy weakened the local currency to get more ringgits for the dollars. Ringgit can be strengthened back to a realistic level but then less Ringgit in government coffers and less money to spend.

 

 

We suffer for this foolishness, it is the general population. Whenever an extra tax or revenue avenue is introduced by the government, it goes on and never gets repealed.

 

What else to say expect we have fools managing our economy since Tan Siew Sing was replaced by Tengku Razeligh and his successors. Voodoo or Malaysian stupidly economics in play.

 

We are only going down a hole which have no bottom and forecast if present PM is in power another 5 years , the Ringgit will be exchanged with US dollars at the rate 7 ringgit to 1 USD and 5 Ringgit to 1 US Dollars and on par with Thai Bahts and Philippines pesos.

 

Not joking but it have been happening in our generation and the devaluation of Ringgit have accelerated

Ringgit to USD RM RM 3.0737 January 01,2011

Ringgit to USD RM 4.4555USD February 20,2017

 

6 years deperication between Ringgit to USD RM RM 3.0737 January 01,2011 and Ringgit to USD RM 4.4555USD February 20,2017 is 44.93932 %

For every Barrell of crude oil sold the value of Ringgit in remitted money have increase by manipulation of country’s official exchange rate helps the country to earn extra local currency when the country is a net exporter of raw materials Crude oil , Petroleum gas, rubber , tin , Palm oil and others when sold in international markets , the selling price is in US Dollars. When US dollars are remitted back to country, best to weaken the local currency and there you go a magical extra amount of local currency. This helps the government revenue collection.

 

 

Once gets addicted to it, it is very difficult as it takes governments will and political power to strengthen the local currency. If this is done then less local currency for the US dollars remitted back to the country.

 

This is why our ringgit got detached with Singapore currency, because Singapore did not see the benefits of a weak local currency against US dollars as Singapore do not have natural resources to sell in the foreign markets but Malaysia had the newly found oil and gas to sell, been greedy weakened the local currency to get more ringgits for the dollars. Ringgit can be strengthened back to a realistic level but then less Ringgit in government coffers and less money to spend.

 

 

We suffer for this foolishness, it is the general population. Whenever an extra tax or revenue avenue is introduced by the government, it goes on and never gets repealed.

 

What else to say expect we have fools managing our economy since Tan Siew Sing was replaced by Tengku Razeligh and his successors. Voodoo or Malaysian stupidly economics in play.

 

We are only going down a hole which have no bottom and forecast if present PM is in power another 5 years , the Ringgit will be exchanged with US dollars at the rate 7 ringgit to 1 USD and 5 Ringgit to 1 US Dollars and on par with Thai Bahts and Philippines pesos.

 

Not joking but it have been happening in our generation and the revaluation of Ringgit have accelerated

Ringgit to USD RM RM 3.0737 January 01,2011

Ringgit to USD RM 4.4555USD February 20,2017

6 years depreciation between Ringgit to USD RM RM 3.0737 January 01, 2011 and Ringgit to USD RM 4.4555USD February 20, 2017 is 44.93932 %

But remember we are now in President Trump's era and cannot live on easy money at the expenses of other countries. Malaysian exports will be hit by import duties in USA and EU and Malaysia go kaput