Back then, people used the barter system to fulfill their desire. Later on, money was introduced to replace the barter system because there were too many difficulties caused and people were lacking of a medium of exchange. With the existing of money, things are given with a value and trading becomes simpler.

Nevertheless, when a country is not attaining its economic equilibrium, there might be a significant decline in the currency’s value. For instance, Malaysian ringgit’s currency is having a substantial drop. According to the Southeast Asia Nation, they are now working on a strategy to strengthen Malaysia’s fiscal position by reducing subsidies, detaining infrastructure tax and imposing consumption tax to secure the country’s finance. The Malaysian government also mentioned that they will announce the further steps they are planning to take to reduce spending and addressed the structural issues that mainly affect the drop of the currency.

From my view, The rising and dropping of the currency is not plainly the government’s responsibility, the country’s citizens such as entrepreneurs are also responsible to flourish the economy by attracting more foreign investors through businesses. Or else, high rate of inflation, budget deficits and the economic growth of the country will be impacted.

References: Liau, Y-Sing. “Ringgit Reverses Drop as Malaysia announce fiscal measures.” (2013): n.pag. Bloomberg. Web. 1 Oct                                      2013.

Images: Ringgit lower against US dollars. 2012. Photograph. The Malaysian TimesWeb. 1 Oct 2013.