Money Changers In SG Are Running Out Of Malaysia Currency After Ringgit Hits All-Time Low
Several money changers in Singapore ran out of ringgit notes for customers on Monday, 25 April.
By Yap Wan Xiang — 27 Apr 2022, 05:45 PM
Singaporean money changers are seeing a huge surge in demand for the Malaysia ringgit (RM) after the Singapore dollar (SGD) hit an all-time high against the Malaysian currency
According to a report by The Edge Markets on Monday, 25 April, the ringgit exchange rate had dipped to RM3.1665 against the Singapore dollar, a record-setting low.
The previous high of RM3.1650 was registered on 31 March 2017, according to Bloomberg data.
The report cited adjustments made by the Monetary Authority of Singapore (MAS), coupled with a weakening ringgit, as the reasons for the strengthening of the Singapore dollar against the ringgit.
The weakening ringgit is due to the uncertainty of how the US Federal Reserve (Fed) will unwind its monetary easing, said Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid.
As of yesterday, 26 April, the ringgit continued to fall to RM3.1708 against the Singapore dollar, reported The Edge Markets.
Following the news of the weakening ringgit, Singaporeans are flocking to their money changers to convert their money to the ringgit
CNA reported that long queues were spotted at multiple locations in the country, such as The Arcade at Raffles Place and People's Park Complex on Park Road.
They were selling RM3.12 to SGD1.
At least seven money changers at The Arcade had run out of ringgit notes at 2.30pm on Monday.
The money changers said that they started to see more customers looking to change the Singapore dollar for the ringgit from last week, with even more looking to exchange currencies on Monday.
Most of the outlets that had the currency in stock saw queues during lunchtime, with customers changing up to SGD3,000 to SGD4,000 for the ringgit.
Several traders cited the upcoming holidays and Hari Raya Aidilfitri as the reasons of the high demand for the ringgit
An employee at Hasan Trading Money Exchange told CNA that the reopening of the Singapore-Malaysia land borders is also a factor.
It is reported that the ringgit was RM3.10 against the Singapore dollar in early April.
MUFG Bank Jeff Ng noted that it was already a more than 2% increase over the past one to two weeks.
