There are three simple steps you need to take in order to get a good MYR-USD exchange rate:
Know the latest MYR to USD market mid-rate - this is your starting point!
Compare your Bank and licensed FX provider transaction costs, including the exchange rate margins as well as the various types of fees. These margins and fee costs vary for
Malaysian ringgit to U.S. dollar (MYR-USD) - 10 Year History
13 May 2018
20 Apr 2018
21 Nov 2017
20 May 2017
20 May 2016
21 May 2013
22 May 2008
The MYR/USD mid-rate is the rate you will see
Quoted on Google
or the News, nobody except the largest banks and businesses can get exchange rates close to this mid-rate. It is actually just the theoretical half-way point (hence mid-rate) between
the last rate at which the MYR / USD was traded (bought or sold) in the international markets.
The closer your final exchange rate is to the market / midrate the better deal you are getting.
2. Transaction Costs - Margins and Fees for MYR/USD Foreign Exchange
The transaction margin from the mid-rate you will be charged by your bank or foreign exchange provider plus any fixed or percentage fees. These margins and fees will vary significantly for International Money Transfers and Travel Money transactions.
MYR to USD Foreign Transfer - Costs Compared
You can see a sample of the margins from mid-rate in the table below which shows an example of the costs charged by FX specialist and the average bank rate when sending money transfers from MYR to USD.
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The below table shows an example of the margins and possible savings when you order travel money online with a currency specialist versus the average bank, kiosk or post office rate to buy foreign cash.
Getting a good market rate is mainly about timing however the transaction margin
you end up being charged can be considerably reduced by around a few percent (of total amount being exchanged) for
travel money and possibly over 5% to 6% when sending money.
The exact potential savings depends on the currencies being exchanged and the amount
you are transferring and if you are willing to shop around.
Why can't I just get the same MYR/USD market rate I see on Google or in the Media?
When you look up the current Malaysian ringgit to U.S. dollar exchange rate on the web the figure you find quoted on sites like google or mentioned on TV is commonly referred to as the mid-market rate.
Getting a great MYR to USD mid-market rate is all about timing, so unless you
are able to wait, watch and time the market this is largely beyond your control.
This rate will go up and down with varying amounts of volatility depending on the currency pair.
This mid-market rate is really only a reference and is just the starting point for calculating the actual rate you will
get for your transaction, luckily we can also use this same rate to determine how good a deal a rate that a provider offers you actually is.
You can use our MYR to USD currency converter to calculate equivalent amounts in each currency using the latest mid-market exchange rates.
Then choose your transaction type for specific Malaysian ringgit cross rates and reviews of leading foreign exchange providers versus the Banks.
3. Currency News, Research and Forecasts for Malaysian ringgit and U.S. dollar
Whenever you are interested in an exchange rate you are actually interested in two currencies due to the fact that the value of a currency is always determined quoted in comparison to another currency.
So it follows that if you are determining the best time to transact, in this case the MYR vs USD, you should pay attention to both Malaysian ringgit and U.S. dollar news and forecasts.
Malaysian ringgit (MYR) - Market news and forecasts
The ringgit was hammered in the second week of May after a shock election result which saw the incumbent Barisan Nasional coalition lose power in Malaysia for the first time in sixty years.
Investors generally despise political drama, especially in emerging market economies, and consequently there were election-induced earthquakes in Malaysian financial markets. Investors were concerned that the new government would roll back financial reforms that have boosted economic growth.
The ringgit, which had averaged 3.9 per US dollar in 2018 and which rarely moves more than 0.5 percent in a day, fell after the election by as much as 5 percent to 4.16 – its weakest level in six months – before recovering to 4.05 at the time of this report.
Malaysia’s new prime minister, Mahathir Mohamad, said following his victory that he would try to make the ringgit as stable as possible.
U.S. dollar (USD) - Market news and forecasts
Approaching the end of April, the dollar was trading at a three-month high against a basket of currencies.
In April, the dollar’s trajectory seemingly re-coupled with that of US interest rate expectations. The world’s reserve currency followed Treasury yields higher as they climbed to multi-year highs. When yields rise, traders expect higher interest rates from the Federal Reserve.
Yields have risen largely because of an increase in Treasuries supply (necessary to fund Trump’s tax cuts and proposed spending), but also from signs of improved wage inflation. A reduction in trade tensions following Xi Jinping’s address to the Boao Forum in April – Xi spoke of the need to ease tariffs and to further open up China’s economy – also helped to cement expectations for four more Fed hikes in 2018.
HSBC said in late April that it had changed its view on the dollar; it was now predicting a bull run and it foresaw EUR/USD falling to 1.15 by year-end, from levels at the time in the mid-1.21s.
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