Thursday, March 30, 2023

Singaporeans are queuing to buy the Ringgit after it hits all-time-low, but money changers are not selling them

Social NewsSingaporeans are queuing to buy the Ringgit after it hits all-time-low, but...

On Friday (5 August), the Malaysian Ringgit once again slid to its newest low against neighbouring Singapore’s dollar, recording an exchange rate of 3.2410.

The previous all-time high reported was on 23 May this year, when the Singapore dollar closed at RM3.19.

With the Ringgit’s depreciation, many people have been rushing to the money changers to convert their money into the Ringgit in the republic.

Source: AsiaOne

However, most of them did not manage to convert their currency as money changers put up signs showing the selling rate at 0, which means that they do not have any Ringgit to sell.

According to Straits Times, it wasn’t that the money changers are running out of Ringgit because of the high demand, but instead, they refused to stock up on the Ringgit due to its volatility which caused them to suffer losses.

Source: Straits Times

Speaking to the press, some money changers said the Ringgit is falling almost every day and those who stocked the currency are doing so much in lower amounts.

Apart from that, they revealed that the profit margin is so low that it is not even worth the labour cost.

Some even said they have to sell ringgit in millions to turn a profit, which is a challenge for small-time money changers.

One of the money changers was reported to only make between $10 (RM32.25) and $30 (RM96.75) for every RM100,000 (S$30,947) sold.

However, they are still willing to buy ringgit from customers if they wish to convert it to Singapore dollars.

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