The risk of MRY devaluation can be spread by investing forex.
The ringgit is one of many emerging market currencies that have seen a wave of competitive devaluation. In addition to dropping below the 3.20 level versus the Singapore dollar, the ringgit has now dropped below the 4.58 level against the US dollar. Consider making a deposit into a foreign currency time deposit account if you lack faith in the Ringgit Malaysia.
Foreign money You can deposit foreign currency in a fixed deposit account, or fixed deposit. You might convert your cash into foreign currency and put it away in a fixed deposit.
This maintains the value of the money while also generating interest on time deposits. However, it should be noted that you will lose money if the foreign currency depreciates while your deposit period is in effect. Additionally, there will be exchange rate changes when changing foreign currency, therefore doing so frequently in the near term will result in losses.
Major domestic banks offer time deposits in foreign currencies. New Zealand Dollar, Australian Dollar, Pound Sterling, U.S. Dollar, and Euro (Euro) are currently the available foreign currencies for time deposits, along with Japanese Yen, Hong Kong Dollar, Singapore Dollar, Canadian Dollar, and China Yuan.
There is typically a minimum deposit requirement for foreign currency time deposits, such as USD $1,000, AUD $1,000, GBP $1,000, RMB $10,000, SGD $1,000, etc. Optional one- to twelve-month storage. The interest on time deposits held in foreign currencies will be calculated daily and paid in one lump payment when the time deposit matures.
As of September 9, 2022, the CIMB Bank (CIMB) official website states that you can earn 2.40% interest on USD deposits for one month, 2.95% interest for three months, and 3.35% interest for six months. 3.70% for a whole year.
(No investment advice is being given; the information is only for sharing purpose.)
