The Malaysian ringgit is strengthening — slowly but steadily — against the American dollar, which can only mean one thing for small-time online income seekers like me — there will be less income from the same amount of effort from now on.

Some history

In 1998, as part of the measures to counter speculative activities on the ringgit, and to pull the country back from the abyss of the 1997-98 Asian financial crisis, the Malaysian government pegged the currency at RM3.80 to USD1 and no matter how the dollar moved, the exchange rate had remained the same.

But two years ago the Malaysian government decided to de-pegged the currency and let it float in a managed environment against a basket of several major currencies.

Now the ringgit-dollar exchange rate is around RM3.2570 to USD1 and going by the speed the Malaysian currency is escalating, it might soon strengthen to below RM3 to USD1. I could already foresee that happening by the turn of this decade.

And there is everly likely possibility that it might gravitate towards RM2.50, the level prior to the 1997-98 meltdown.

I could have made a small killing

Ah, I remember well how the volatile the movement of the ringgit during the economic crisis. I had seen it moving from RM2.50 to RM2.80 then it above RM3.00 in just days.

If I had been a currency trader at that time — not that I am now — I could have made me a small killing.

I remember how a friend had laughed loudly over the phones when I told him it could go above RM4.00. And then as if to prove that I was right, the ringgit slid further. If I remember it correctly, at one time, the ringgit briefly kissed RM5 level before hovering back to around RM3.50 - RM3.90 region.

Then the government decided to peg the ringgit at USD3.80 to the dollar in 1998, and de-pegged it in 2005. And here I am not sure whether to be happy or otherwise to see the ringgit strengthening.

For patriotic reason, of course I would like to see the ringgit strengthen for selfish reason, I would want it to move south.

When three would not make a thousand

It would harder and harder to achieve my RM1,000 monthly income target with the strengthening ringgit.

Now, instead of making RM1,140 for every USD300, it would now make me only RM978. Not that I am earning anywhere near USD300 at the moment. Now, I would have to earn USD340 a month to reach an equivalent of RM1,000.

But there is no use to cry over a strengthening ringgit as it could also mean that I can now afford to buy more services — such webhosting and domain registration — with less amount of ringgit.

So in the end, things would balance itself out. The only things left to be done is to work on earning that dollar and spend less time worrying about the income loss because of foreign exchange.

Of course, there is only one way not to suffer losses in foreign exchange — not earning any income in foreign currencies. Now, I wouldn’t want to not lose that way.

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