Consumers in Malaysia are turning to money changers to trade the domestic currency for US and Singapore dollars, triggering a foreign currency shortage as a steeply falling ringgit cuts into their buying power.
Currency traders say the run on the ringgit is causing a shortage of US dollars as people try to move their money into safer currencies. At least two local banks are said to be limiting withdrawals to RM5,000 in cash at counters due to a shortage of cash. Any amount above RM5,000 must be withdrawn by bank check.
Under Malaysian banking regulations, retail customers are not allowed to change ringgit into foreign currencies. They must withdraw local currency and take it to domestic money traders to buy foreign currencies.
Because of the liquidity crunch, middle-class Malaysians also are said to be moving their savings out of the country to Singapore, hoping to protect their assets and to make a quick gain by buying cheap ringgit when the currency market bottoms out at some future date. Financial advisors are said to be telling their clients to move savings out of Malaysian banks or transfer to offshore accounts in safer currencies. Full story...
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Currency traders say the run on the ringgit is causing a shortage of US dollars as people try to move their money into safer currencies. At least two local banks are said to be limiting withdrawals to RM5,000 in cash at counters due to a shortage of cash. Any amount above RM5,000 must be withdrawn by bank check.
Under Malaysian banking regulations, retail customers are not allowed to change ringgit into foreign currencies. They must withdraw local currency and take it to domestic money traders to buy foreign currencies.
Because of the liquidity crunch, middle-class Malaysians also are said to be moving their savings out of the country to Singapore, hoping to protect their assets and to make a quick gain by buying cheap ringgit when the currency market bottoms out at some future date. Financial advisors are said to be telling their clients to move savings out of Malaysian banks or transfer to offshore accounts in safer currencies. Full story...
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