Malaysia Ringgit Essay
1.0 Introduction
The exchange rate is defined as the currency of a country mentioned in the other country 's currency. For example, the Malaysian Ringgit currency referred to in the United States Dollar, Singapore Dollar, Thai Baht, Indonesian Rupiah, Japanese Yen and other currencies again. The currency of a country is determined by the supply and demand of the country 's own currency. When individuals or foreign firms buying Malaysian goods, the supply of foreign currency to be converted to Ringgit Malaysia occurred. Similarly, when an individual or firm Malaysia wants to buy foreign goods or services, the demand for foreign currency will be accepted. Foreign exchange is also intended as a currency of a country that is held by the people
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Selling Malaysian Ringgit depends on the wishes of consumers, firms and the government convert Malaysian Ringgit their foreign currency. This situation depends on the demand of Malaysia to foreign goods and a desire to change Malaysian Ringgit Malaysia to the foreign currency to buy real estate, stocks, bonds and other assets in other countries. When the lower value of the Ringgit Malaysia in terms of the US dollar, the lower the cost of buying Malaysian goods by the United States Dollars. For example, the current price of a Proton Wira made in Malaysia is RM50, 000. If the current exchange rate is US $ 0.4 for every Ringgit Malaysia (or RM2.50 = US $ 1), a resident of the United States will pay US $ 20,000 to buy the car. Say the current exchange rate is US $ 0.2 for every Ringgit Malaysia (or RM5.00 = US $ 1), then the population of the United States will need to pay US $ 10,000 for the car. Means lower prices Malaysian Ringgit in terms of foreign currency, the lower the prices of goods, services, assets and Malaysia in terms of foreign currency. Next what is supposed to happen is that more Malaysian products may also request that the state has increased the value of the currency? The demand curve for foreign currency Ringgit Malaysia slope down from left to
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