Short queues at some money changers despite ringgit plunging to 26-year low

The Malaysian ringgit on Tuesday (Feb 20) plummeted to its lowest since the Asian financial crisis some 26 years ago, trading at RM3.568 against the Singapore dollar as of 7pm on Feb 20, reported AFP. 

Then on Wednesday morning (Feb 21), it dropped to a further RM3.573 at about 8am. 

However, money changers AsiaOne spoke to on Wednesday said that there were no crowds swarming their establishments.

The ringgit has so far depreciated by 2.6 per cent against the Singapore dollar since Jan 1, reported The Business Times.

In the last decade alone, the ringgit has plunged by more than 37 per cent since the time when one Singapore dollar could buy RM2.60. 

A quick check on forex website CashChanger showed that many money changers in Singapore were selling the ringgit at a rate of about 3.525 this afternoon (Feb 21). 

At some money changers in Toa Payoh central that AsiaOne visited, the queues were short, with only three or four people in the line. 

An employee of Mayura Money Changer said that they have not seen a change in the number of customers exchanging ringgit despite the drop.

"They're expecting it to fall more so they don't feel rushed to exchange now," he added.

'Most go online'

An employee of GoldMillion Xchange, another money changer in Toa Payoh, told AsiaOne that there's an increasing number of people heading online to exchange their currency as the exchange rates for cash at money changers does not fluctuate much in the short term.

"Cash is now a slow-moving form of currency exchange compared to online exchange or remittance transfers," he said.

"We only sell about S$400 to S$600 worth of cash in ringgit every day now. About 10 to 15 years ago, we would sell up to S$4,000 in a day."

'I exchange when I need'

Marcus Chia, a Singaporean who was queuing at the money changer, told AsiaOne that he was only buying ringgit as he was visiting Malaysia this weekend.

"The rate doesn't affect me, I exchange when and what I need," Chia said.

"I will change any reminder back to Singapore dollar when I return too."

Another customer echoed this statement.

"I'm buying ringgit because I'm going to Malaysia tomorrow. If I wasn't, I have no reason to exchange my money," she said.

ALSO READ: Ringgit hits record low against Singapore dollar but not everyone is rushing to money changers

bhavya.rawat@asiaone.com