014. MYR vs SGD vs USD: (1) Currency Story

014. MYR vs SGD vs USD: (1) Currency Story

How much has MYR perform against SGD and/or USD? Local are complaining about falling MYR.

Let's see how much it has depreciated / appreciated against SGD and USD.

Charts are from www.xe.com.

MYR vs SGD

We can see from the chart that it was about MYR2.30 to SGD1.00 ten years ago. Today it is MYR2.68 to SGD1.00. So, MYR is depreciated against SGD. But how much? Let's use a financial calculator to calculated the annual rate.

PV = -2.30

FV = 2.68

n = 10

i = 1.54%

An annual inflated rate of 1.54% only.



MYR vs USD

It was MYR3.80 to an USD ten years ago. Today it is MYR3.63 against an USD. So, MYR is not depreciating against USD? If we consider the rate before the current spike, it was MYR3.16 to USD1.00. Let's use financial calculator to calculate the appreciation again.

PV = -3.80
FV = 3.63
n = 10
i = -0.46

If we take the rate before spike:-
PV = -3.80
FV = 3.16
n = 10
i = -1.83

We can see MYR is appreciating against USD.

Let's try to see SGD vs USD.

So, we can see USD is depreciating against SGD.

SGD is a stronger currency?

The fact is we do not know which currency will perform better in the future. As a responsible parents, you might want to plan your children's education fund not in local currency only. It is wise to put some money in SGD and / or USD. Agree?