THE IMPACT OF COVID-19 PANDEMIC ON THE EXCHANGE RATE VOLATILITY OF THE RINGGIT MALAYSIA

Abstract

The COVID-19 has affected countries globally, including Malaysia, putting the future of the global political, legal, environmental, technological, social, and economics at risk. Among other aspects, the impact of the pandemic towards currency’s exchange rate and economic sustainability is one of the most critical concerns for many countries. The COVID-19 pandemic's effects are examined in this study towards Ringgit Malaysia’s volatile exchange rate, and the need to manage these financial risks during the pandemic that could prolong and its nature is unpredictable. This paper studies the exchange rates of these top five countries' exports and imports partners according to the scale of trade value with Malaysia. These are the Hong Kong dollars (HKD), Singapore dollar (SGD), US dollar (USD), Singapore yuan (CNY), and Japanese yen (JPY). According to this study, the USD, HKD, or JPY appreciate along with the COVID-19 cases reported or total cases, whereas the CNY depreciates. Second, COVID-19 new cases do not correspond with COVID-19 cases recorded but do correlate with the SGD's depreciation. Lastly, the COVID-19 death cases correlates with appreciation of CNY and SGD but depreciates as against the USD, the HKD, and the JPY.