Ringgit Malaysia is now at 5 year low trading at RM 4.46 to 1 USD, lower than the level when we are facing a pandemic.

However, does the weak currency translate into a more competitive economy? In order to answer this question, we use the effective exchange rate, which is data published by the Bank of International Settlement (BIS) monthly.

The effective exchange rate is the exchange rate of a monetary zone, measured as the weighted sum of the exchange rates with trading partners and competitors. A rise in the nominal effective exchange rate corresponds to a deterioration in exchange competitiveness.

In short, we can conclude that Malaysia's Ringgit is increasing in its competitiveness.

You can equip the tool to check out other countries and to check out the data for a longer period via this link