'I ran out of stock by afternoon': Money changers kept busy as Malaysian ringgit hits new low against Singapore dollar

The Malaysian ringgit has hit yet another low, sending some money changers and their customers here into a tizzy.

On Monday (Feb 19), the Malaysian ringgit fell to a rate of RM3.555 against the Singapore dollar.

The Malaysian ringgit is about two per cent away from reaching 4.885 per US dollar, a level last seen in 1998 during the Asian Financial Crisis, reported Bloomberg.

An employee at Central Exchange Money Changer in Suntec City told AsiaOne that today had been especially busy for him compared to the past two weeks.

"Many customers came to exchange ringgit. I ran out of stock by afternoon!" He exclaimed.

Speaking to AsiaOne, an employee at Asmart Exchange in Toa Payoh Interchange said that the number of customers approaching them to exchange ringgit has been on the rise since the initial drop in early February. 

"I think there's not much difference between before the festive season and today," he said.

"The value that customers exchanged hasn't changed. Most people are just exchanging to keep the cash for future use," the employee added.

A 24-year-old marketing executive, who wished to be known as Teo, told AsiaOne that the ringgit dropping is beneficial to her.

This Singaporean explained that the weaker ringgit increases her spending power in Malaysia when she visits her partner who lives there. 

"I just watch the exchange rate and go 'yes!' when it's good," Teo added.

Teo's partner, Lim, is a recent university graduate who is considering job opportunities in both Singapore and Malaysia.

The 24-year-old is upset about the continuous drop in the ringgit's value and said that it is pushing him to work in Singapore instead of Malaysia.

"It's [the drop] a bad thing for Malaysians who work and live there because the cost of living is still increasing," Lim said. 

"But if you're working in Singapore and living in Malaysia, then it's good news," he added.

The ringgit has depreciated by about 10.5 per cent against the Singapore dollar compared to a year ago, reported The Business Times earlier this month. 

Over the past 20 years, the ringgit has fallen by 60 per cent from the point when one Singapore dollar could buy RM2.24.

ALSO READ: $1 to RM3.50: Money changer sells out ringgit in under 2 hours

bhavya.rawat@asiaone.com