CONSIDER the following, from VIEW : FEB 15 2024, Bank Negara's International reserve's which stood at US$115.4 biliion have fallen to VIEW : US$112.8 billion as at April 30 2024.
THIS in RInggit terms is a RM12.27 billion drop in just 75 days, which works out to a drop of RM163.6 million a day.
NOW losing RM163.6 million a day is a lot of money, of which one suspect, a large portion has been utilised to prop up the Ringgit against the US Dollar which now stands at RM4.72.
INSTEAD of spending so much to defend the Ringgit, one way which Malaysia, could have still defended the Ringgit was by making sure that the EXTRA oil, Malaysia exports to China is transacted only in Ringgit.
AS it is, READ : some claim Malaysia exports 1.1 million barrels a day to china, while others claim VIEW: it's 6 million barrels a month as opposed to our real output of about 300,000 barrels a month.
LETS, just take the 6 million barrels a month as the accurate figure and minus of the 300,000 barrels which is our real output, meaning the EXTRA oil sold to China is 5.7 million barrels of oil.
PER barrel of Brent Crude is USD 82.79 or RM390.76 if transacted in Ringgit, which means 5.7 million barrel of oil will create demand for the Ringgit to the tune of RM2.27 billion a month or RM5.67 biliion in 75 days.
