GBP MYR

The British Pound, the official currency of the United Kingdom and its overseas territories, is most definitely a major currency. The Malaysian Ringgit on the other hand is not. Thus, the pair that the two currencies make is not a major pair either.

The GBP

The British Pound is one of the oldest currencies in the world. Indeed, it is difficult to put an exact date on its introduction. Seemingly, it has always been in use, since the Middle Ages at least.

The Pound went through various coinages through its existence. In 1552, it featured silver coinage. In 1663 gold coinage was introduced on top of the existing silver, turning Britain into a gold standard country while it retained silver for imports.

The economy of the UK is the 6th largest in the world. That explains why it is capable of lending the GBP the sort of clout that it does. It is also as diverse as it is large.

The main industries are finance and manufacturing, and this includes cutting edge sectors such as aerospace.

Britain imports foodstuffs, fuel, various manufactured goods and machinery. The main products/exports of the UK economy are chemicals, beverages, tobacco, food, manufactured goods and fuel.

The MYR

The name of the Malaysian Ringgit carries a telltale clue regarding its origins. The word “ringgit” mean “jagged” in Malay. The Spanish Silver Dollar, the predecessor of the MYR, used to feature serrated edges, hence the name.

The subdivision of the Ringgit is the sen. 100 sen make 1 Ringgit. Also known as the Malaysian Dollar (informally), the Ringgit was introduced in 1967. It came to replace the British Borneo Dollar and the Malay Dollar. Its run as a currency started out on the wrong foot: within its first 5 months of existence, it shed more than 14% of its value against the dollar.

The price of the Malaysian Ringgit reflects the economic conditions within the country.

The Malaysian economy recently went through a sweeping transition. From a minerals and agricultural commodities based footing, it moved to a services and manufacturing focus.

The financial crises of the last decade have exacted a major toll on the economy of Malaysia, and by extension, the strength of the MYR.

GBP/MYR Analysis

While the British did indeed have colonial ambitions in Malaysia’s region in the past, these days the two currencies mainly correlate through the price movements of commodities such as LNG (liquefied natural gas) and crude oil.