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Money-changers taken aback by ringgit rush

SINGAPORE — Caught off-guard by the slump in Malaysian ringgit prices that has persisted this week, some money-changers ran short of the currency for several days as consumers rushed in to snap it up, leaving the businesses scrambling to replenish their supply.

Malaysian ringgit bank notes. Photo: Reuters

Malaysian ringgit bank notes. Photo: Reuters

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SINGAPORE — Caught off-guard by the slump in Malaysian ringgit prices that has persisted this week, some money-changers ran short of the currency for several days as consumers rushed in to snap it up, leaving the businesses scrambling to replenish their supply.

Mr Mohamed Rafeeq, secretary of the Money Changers Association of Singapore, said the ringgit usually tends to tip close to the Chinese New Year when demand is high, which money-changers said they would prepare for by raising their orders from suppliers. But the ringgit’s slide to a 10-month low against the Singapore dollar on Monday, amid fears that falling global fuel prices would hit the oil exporter hard, caused money-changers to be caught out.

Two money-changers at People’s Park Complex told TODAY their supply of ringgit was depleted by Tuesday evening and that they had not been able to restock until yesterday morning. One of them, Mr Farook, added that his supply of ringgit usually lasted a full day or sometimes even till the following day, but by 4pm on Tuesday, he had to start turning customers away.

“I did not have any more ringgit and couldn’t get more, so I directed (the customers) to those who still had some,” said another money-changer, Mr Hussain.

Banks here were also low on supply. A check at a few bank outlets yesterday, including a UOB branch, showed that some had also run out of ringgit.

Meanwhile, CIMB Bank Singapore’s head of retail banking Coreen Kwan said it had noticed a four-fold increase in online money transfers from CIMB Singapore to CIMB Malaysia, as well as in remittance services, between Monday and Wednesday.

The two money-changers said their suppliers usually got their stock directly from Malaysia but, due to the high demand, were not able to provide them with more immediately. They declined to divulge more information on who their suppliers were or how they brought in the money.

Mr Mohamed Rafeeq, who has a money-exchange business in Raffles Place, said: “When the suppliers run out (of ringgit), the whole of Singapore runs out. There is nothing anyone can do and no way we can prepare for this.”

The shortage, however, appeared to have eased by yesterday, as checks with several money-changers showed. When asked if he had S$20,000 worth of ringgit for sale, one money-changer at The Arcade — a popular money-exchange hub at Raffles Place — confidently replied: “Sure, no problem. Any amount can.”

The ringgit, which closed at RM2.64 to one Singapore dollar yesterday, has fallen to similar levels in the past. It closed at RM2.61 in September last year, for instance.

But analysts have said that Malaysia, whose oil-related industries make up a third of the country’s economy, is likely to be the Asian country that will be hit hardest by the falling oil prices.

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