Removal of 1 cent : imminent monetary disaster
Don’t ask me why BNM come out with this idea. BNM just propose to phase out 1 cents from the Malaysia monetary system, and the excuses : 1 cents mint are expensive to made.
In fact, monetary system are a delicate matters. Looking into the “supermarket” factor are plain idiocy. Contradict to smart alecks idea of removing 1 cents from the monetary system, the country monetary system actually exchange billions ringgit base on the small decimal points
And guess what, the modern world monetary system runs either digitally or physically. For example, online transaction, credit card payments, Bank overnight interest, are run using the decimal points few cents for individual consumer. Removal of the 1 cents coins mean more than remove the coins, it mess up with a BILLIONS RINGGIT of monetary system.
Worst, the annoucement is going to give a shocked to investor in KLSE. Think of this, if you stock are valued at RM1.26, RM4.91 , whether rounding up or “removal” of the cents is a huge profit and lost, especially to broker house that runs hundred millions of transaction.
And don’t forget, Malaysia ringgit foreign exchange rates still ties to the cents point. Because we are not using the Dutch system(without decimals), rounding up the 1 cents point will make Ringgit volatile to uncertainty.
OMG, it seems our country monetary policies are runs by a 7 years old mindset. What next? Print as much Ringgit as possible to fuel those economy region? And make Malayasia win the inflation race with Zimbwawe ?
Perhaps it is time to mortgage my small flag apartments and exchange to golds. The same amount of golds might buy back 5-6 houses if Malaysia government mess up the whole system.
US 1 cent coin are more expensive to produce than Malaysia 1 cent. With 10,000 more economic expert in US, nobody complain it is “inconvenience” and make a call to abolish the coins.
EU 1 cent coin are not cheap either.
Now I wonder where is this Half-past-six idea come from? Zimbwabwe?