Currency Depreciation: A Fine Line Between Poorer and Richer

From 1997 (the year of Asian financial crisis) to 2005, my country's currency (Ringgit) had depreciated by around 50% against the US Dollar! That effectively more or less dented my pocket's purchasing power by half, and that's a very huge quantum! Not only imported goods were more expensive, it also increased the cost of travel and doing business overseas!

In 2005, the Government finally decided to do the "right" thing by floating Ringgit against a basket of global currencies, thereby allowing the currency to gradually adjust itself against global forces (to a certain extent) and as such, the currency has gradually appreciated in value (against US Dollar) from the exchange rate of 3.8 (to every dollar) in the year 2005 to around 3.1 at the beginning of 2008, aided by the weakening US Dollar due to US financial crisis. That effectively "enriched" my purchasing power by closed to 20% whenever i travel to countries where US Dollar is commonly used or accepted, or buying imported goods. Things were looking rosy as the projection by some authorities was that it could touch 3.0 by year-end and even better in 2009!

However, how things have changed for the worse, within just over a period of five months! First it was the political uncertainties, followed by the Government's infamous decision to levy 30% windfall tax on the Power Industry and the latest decision by again the Government to increase public expenditure for year 2009 to sustain the country's economic growth amidst economic slowdown, which ultimately lead to the dumping of Malaysia Ringgit and the outflow of foreign funds! The currency has now effectively depreciated half way between 3.8 and 3.1, and the outlook is not looking good until the foreseeable future!

In the midst of current high inflation and economic slowdown, a depreciating currency is like adding salt to the wounds!

Ironically, it's certainly a good wake-up call for me personally that perhaps it's time for me to work harder to earn more US Dollar instead of Ringgit, so that i can salvage my financial position from a "poorer" to a "richer" state!

Thankfully, the internet has provided me the ideal platform to do just that!

Heads Up, Malaysia-based Internet Marketers, Paypal Will Pay You!

Finally, a piece of good news for all Malaysia-based Internet Marketers! You are now finally able to withdraw money from Paypal! This must be one of the best piece of news for all Malaysians earning a living in the cyberspace! In fact, many Malaysians have been suffering from the fate of not able to withdraw their earnings from Paypal due to Paypal's restriction. For those who did not know, there is actually a way out before this, ie., by applying a VMI (Virtual Money Inc card)....anyhow, that's history now!

For the official announcement made by Paypal, please click http://pages.ebay.com.sg/sea/paypal/withdraw.html

However, this piece of news have actually created plenty of confusion among Malaysians due to the policies varied among banks! For the matter, not all Malaysian banks offer this withdrawal facility.

First and foremost, do take note that the current withdrawal method is available to Visa® branded credit, debit or prepaid card ONLY. So any card with Master logo is OUT!

As at current, only the following banks entertain such request:

• RHB Bank (7 days)
• CIMB Bank & Southern Bank (12 days)
• Citibank (14 days)
• HSBC Malaysia (6 days)
• United Overseas Bank (12 days) - NO DEBIT VISA ELECTRON

(source: Geek's Corner)

VISA cards that can be used for PayPal withdrawals for now:

1. Al-Rrajhi ATM Debit Card i
2. Public Bank Visa Electron Debit Card
3. UOB ATM with VISA Electron
4. BSN Matix Visa Electron
(source: Geek's Corner)

The Debit cards are:
1. Public Bank Visa Electron Debit Card
2. UOB ATM with VISA Electron

Before you happily go to the bank and withdraw the money, you need to be aware of the following terms and conditions:
- There is USD5.00 Withdrawal Fee charged by Paypal;
- Prevailing Visa + Bank Commission of 2.0% to 2.5% is imposed by the Bank before conversion to Ringgit;
- The whole transaction may takes 7-14 working days to clear;
- There is a maximum amount of $500 a day withdrawal, minimim is $10.

On Paypal perspective, the account must also be a verified or confirmed status.

To transfer the funds to credit card is now made simple by Paypal. Login to your account and click withdrawal. You will then see the option of "transfer funds to your card". That's it!

For more information, please click the following weblogs:
Geek's Corner
Matt's Internet Marketing Blog