THE sliding US dollar may bring cheer to importers and those with US-dollar debts, but it is bad news for our exporters. With the US dollar continuing to weaken, it makes sense for local companies to start quoting their exports in ringgit.

Kuwait abandoned the dollar peg in May 2007 due to its weak buying power. In November of the same year, the Central Bank in South Korea urged shipbuilders to issue invoices in won. At the Taj Mahal, tourists have to pay for their tickets in rupees as the dollar is no longer accepted (Asian Bloomberg, Dec 20).

The ringgit has strengthened by 6.8% against the US dollar in the last 12 months, from RM3.53 on Jan 2, 2007, to RM3.2885 on Jan 3, 2008.

The general consensus is that the dollar will slide further in the months ahead. That being the case, why should our export business continue to be denominated in dollars? Why not use the ringgit instead?

Likewise, Malaysians going overseas should carry the currency of the country that they are visiting or euros. This is something worth considering.

S.M. MOHAMAD IDRIS,
President, Consumers Association of Penang.

Source: The Star – January 11, 2008