If you’re considering USD to MYR trading, there are a few things you should know about the Malaysian Ringgit. Here’s a quick guide to MYR trading.
The Malaysian Ringgit is the official currency of Malaysia. It is divided into 100 sen, and is also sometimes referred to as the Malaysian Dollar. The MYR is issued by the Central Bank of Malaysia.
Trading USD To MYR Today
As of May 2022, the exchange rate for USD to MYR was around 4.40. This means that for every US Dollar, you would get around 4.4 Malaysian Ringgit.
When trading USD to MYR, it’s important to be aware of any political or economic news that could impact the value of the Malaysian Ringgit. For example, if there is positive news about the Malaysian economy, this could lead to an increase in the value of the MYR. On the other hand, if there is negative news about the Malaysian economy, this could lead to a decrease in the value of the MYR.
Overall, USD to MYR trading can be a great way to make use of your knowledge of Malaysia and how the local economy is performing on a global scale. Usually forex trading Malaysia Ringgit can be done with International brokers as per those listed here, but you should check to be sure seeing as MYR is not one of the classically listed ‘major’ forex pairs that all will provide as standard.
As a currency that up until 2005 was firmly pegged against the USD, trading MYR in forex is a relatively newer past-time, but one which warrants attention in local markets due to the impact it has on the price of almost all things.
A brief history of the Malaysian Ringgit
The Malaysian ringgit is the currency of Malaysia. It is divided into 100 sen (cents). The ringgit was formerly subdivided into 20 stang, each of 4 duit (superseded by sen in 1967).
The word “ringgit” comes from the Malay word meaning “jagged”, which refers to the serrated edges of silver Spanish dollars which circulated widely in the area during colonial times.
The Malaysian ringgit is abbreviated as RM, and international currency code MYR. The first series of banknotes was issued by Bank Negara Malaysia in 1967, in denominations of 1, 5, 10 and 50 sen, 1 and 5 ringgit.
In the second series, issued between 1971 and 1987, the 1 sen note was replaced by a coin and the denominations were increased to include 100 and 500 ringgit.
The third series began with the issuance of notes in denominations of 1, 2, 5, 10 and 20 ringgit on 15 August 2006. On 6 September 2012, BNM introduced a new design for the obverse side of the banknotes with better security features including a watermark, security thread, iridescent stripe and latent image.
History of USD to MYR
As of June 2011, the ringgit is traded at MYR 3.07 to the US dollar, MYR 4.28 to the Singapore dollar and MYR 5.90 to the Pound sterling.
The ringgit was pegged at 3.80 to the US dollar from 1998 until 2005, and at 3.20 to the dollar from then until 21 July 2005, when Bank Negara Malaysia announced that the ringgit would be allowed to float against a basket of currencies, with immediate effect.
The pegged rate was maintained at 3.80 for another two weeks before being abandoned on 1 September 2005 in favour of a managed-float system in which the currency is allowed to move within a tight band against a basket of currencies.
As of this year, the Malaysian ringgit is the 13th most traded currency in the world with a daily trading volume of $26 billion.
The trading of forex in Malaysia is regulated, and allowed, but you should always use appropriately regulated brokers, and ensure you have a good trading plan and risk management in place. Remember that currency trading even major pairs is risky, and USD to MYR trading should be something you undertake with maximum caution.
Many forex traders believe that a plan that centers around technical analysis, supported by a fundamental understanding of a particular currency pair, gives you the best chance of ending up as successful.