# Economist: Loss of confidence due to 1MDB dragging ringgit down | Malaysiakini

> Economist Jomo Kwame Sundaram said the ringgit's steady decline over the past 18 months cannot be attributed only to falling crude prices. He pointed to a loss of confidence in the government as the 1MDB scandal widened. The ringgit had slid nearly 5 percent since November 9, and foreign reserves fell by nearly US$2 billion in two weeks.

- Date: 2016-12-08 · published 2016-12-08T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/73732-economist-loss-of-confidence-due-to-1mdb-dragging-ringgit-down-malaysiakini
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

Confidence-driven capital flight weakens the ringgit and raises USD/MYR, which increases the local cost of dollar-priced feed imports.

## Read by commodity

- USDMYR: bullish ▲

## Sources

- malaysiakini.com: https://www.malaysiakini.com/news/365551

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.