Essay --

How to Increase the Value of Malaysian RinggitBased on our findings, we reached into the conclusion that there a two significant ways to improve, calm and probably increase the value of Malaysian Ringgit internationally. First, the government should maintain the form _or_ system of government of move over economy and also considering the usage of gold dinar in the currency system instead of fiat monetary system. Maintain the indemnity of Open EconomicMalaysia is a small and heart-to-heart economy which knobbed heavily in international swap. The frugal theory suggested by Dornbush (1974) highlighted that the elimination of tariff (greater trade openness) will cause currency depreciation by reducing the price of exportable goods and increase the price of importable goods.Since the results showed that open economic policy can cause the depreciation of RM/USD, Malaysia should maintain the policy of open economic. Open economic policy has successfully raised Malaysia position in the international trade. Currency depreciation increases the competitiveness of Malaysia exporters and encourages domestic producer and importer to fortuity into cost effective production mode to save costs. Although increase in Malaysia trade agreement tends to depreciate RM, but the control of Malaysia on the trade balance is limited as the increase in trade balance depend on the get power of the foreign importers and the competitiveness level too.Results also indicate that increment in domestic interest pasture will dampen our exchange rate and increase in gold supply, on the other hand, strength the RM. This finding shows that monetary policy is a useful tool in controlling the movement of Malaysian Ringgit. fleck increase in the interest rate could cause further crownwork inflows tha... ...ry. The three main factors are the use of gold and silver as a currency, to avoid currency devaluation, and to limit printing of loose bills (fulus).In addition, manipulation of curr encies and the impact toward one economy could be cut down because of the fact that gold does not inflate in value as it is a commodity and, thus, has an intrinsic value. Dr. Mahathir Mohamad said that gold was also open to some risk of speculation but it was safer than conventional currency which had no intrinsic value and could be manipulated indefinitely (The Star, 2002). All these problems arise because the domain went off the capital Standard. In the International Conference on Gold Dinar Economy 2007, Tun Dr Mahathir noted that in the case of paper battalion will have risk in losing their value and also purchasing power. He stressed back that only Gold Dinar very has a value in it.