Question
During March-April 2022, the Malaysian Ringgit experienced a depreciation (i.e. the exchange rate increases, for example on 1/1/2021, the rate the MYR to USD exchange
During March-April 2022, the Malaysian Ringgit experienced a depreciation (i.e. the exchange rate increases, for example on 1/1/2021, the rate the MYR to USD exchange rate was 4.02, while on 30/4/22 it was 4.35) which is significant against several major trading partner currencies.
A. With the help of a diagram, explain why the depreciation occurs based on demand and supply analysis taking into account that many analysts mention that the decline NOT RELATED to the outflow of money (capital).
B. Explain the effect of the above.
Foreign trade (import and export) Malaysia., The welfare of Malaysian private students abroad, Current account balance & Direct foreign investment
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