Medic Gone Mad

Thursday, October 9, 2008

Heard of pegging ur money instead of pegging ur clothes??

What does our new Finance Minister Datuk Seri Najib Razak got to say about this -- Tun Dr Mahathir Mohamad has suggested the reintroduction of the ringgit peg to lessen the impact of the global economic crisis on the currency.

In his support remarks, Muhyiddin Yassin said the government should study the suggestion to cushion off the impact of the weakening US dollar against other major currencies.Yes folks..the weakening of the US dollars...yeah!!

Tun and Muhyiddin are right. The fluctuations in the ringgit value had affected the country's economy and the government should not continue with the managed float of the ringgit(bear in mind that the current system is the floating system). The value must be fixed as it would strengthen the economy and create structural changes without having to depend on the model from western experts.

“If the US economy declines, the country, which is among its key trading partners, will also be badly affected,” Dr M said.

The ringgit's RM3.80 peg against the US dollar imposed in Sept 1, 1998 was scrapped in July 21, 2005 and was operated by a managed float against a basket of currencies (Quoted from An Analysis of the Malaysian Pegging System). Although the pegging of the ringgit by the government in 1997 is perceived to be different from the current uncertain global economic scenario, it was possible that several mechanisms in the previous pegging of the ringgit could be used again.

Muhyiddin said the uncertain global economy today is due to the sub-prime problems prevailing in the United States which resulted in several major banks in the country to go bankrupt and this scenario is different from the situation in 1997.

The government, he said needed to keep tabs on the current world economic developments and take necessary initiatives to tackle the problem.


Now, Najib... its time to be a good 'money-man'!...but with all these shouts of 'release RPK..release Teresa and release whoever..the list continues'...will he be able to make it?

2 Comments:

Blogger shahirah said...

maybe he can...."money-man"..hurmm...kind of superman..haha... duit skang mcm dh xde value....

October 23, 2008 at 12:02 AM  
Blogger arshadsyahali said...

haha..we'll see...but about the money being of no value nowadays...it depends sha..depends on the countries...gulf countries have real values in their money..it's just that they exchange them for a low rate with the rest of the world.. :)

November 3, 2008 at 2:38 PM  

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