The decline of a country's currency can have significant repercussions on the economy and the lives of its citizens. In Malaysia, the fall of the Malaysian Ringgit (MYR) has become a crucial issue that demands serious attention. In this context, the question arises: who should be held responsible for the decline of the Malaysian Ringgit, the Prime Minister who also serves as the Finance Minister, or the Governor of the Bank Negara Malaysia?
Role of the Prime Minister as Finance Minister:
The Prime Minister of Malaysia holds a dual responsibility as the head of government and the Finance Minister. In the capacity of the Finance Minister, he wields significant influence over economic policies, including fiscal and monetary policies. Therefore, the Prime Minister has an obligation to ensure the stability of the country's currency and to safeguard the overall economic strength.
However, economic decisions and actions are not solely within the hands of the Prime Minister, as monetary policies are also influenced by the Bank Negara Malaysia. Thus, assessing the decline of the Malaysian Ringgit cannot be solely attributed to the Prime Minister as the Finance Minister.
Role of the Governor of Bank Negara Malaysia:
The Governor of the Bank Negara Malaysia is the leader of the central bank and is responsible for monetary policies and maintaining currency stability. The primary tasks of the Governor include managing interest rate policies, currency interventions, and preserving the nation's foreign exchange reserves. Consequently, the decline of the Malaysian Ringgit can also be viewed as an outcome of the monetary policies implemented by the Bank Negara Malaysia.
The Importance of Synergy:
In the context of the decline of the Malaysian Ringgit, it is crucial to acknowledge that synergy between the Prime Minister as Finance Minister and the Governor of Bank Negara Malaysia is essential. Both parties need to collaborate to formulate policies that strengthen the value of the Ringgit and support economic growth.
Conclusion:
The responsibility for the decline of the Malaysian Ringgit cannot be separated between the Prime Minister as Finance Minister and the Governor of Bank Negara Malaysia. Both play crucial roles in maintaining economic and currency stability. Collaboration and cooperation between them are vital to achieving effective solutions to address the economic challenges, including the depreciation of the Malaysian Ringgit.
