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A number of people in Singapore took the opportunity to exchange Sing dollars for Malaysian ringgit on Apr. 21 when the exchange rate hit a five-year high in SGD's favour, reported Shin Min Daily News.

Although the exchange rate dropped slightly the next day, many were still going to moneychangers.

Rise in exchange rate

Shin Min spoke to several money changers on Apr. 22.

The co-owner of Crante Money Changer in People's Park Complex, surnamed Huang, said the exchange rate rose from 3.07 on Apr. 14 to 3.10 on Apr. 21.

Huang said the main reason for this increase was the adjustments made to the Singapore dollar by the Monetary Authority of Singapore (MAS), while the Malaysian ringgit has not fluctuated much.

The exchange rate has been rising since end-February and the favourable rate on Apr. 21 prompted more people to buy Malaysian ringgit, Huang noted.

At her money changer, Huang said one person even acquired RM100,000 in currency.

She estimated that the total volume exchanged at the money changer on Apr. 21 amounted to close to RM400,000.

Comparable to business on Good Friday on Apr. 14, she added that this might be the best business the money changer has seen since borders have reopened.

In July 2015, the ringgit was considered to have been trading at a low when it hit RM2.81 to S$1, which makes the current rate unprecedented.

Rare to find 3.15 exchange rate

Money Changers Association Secretary Oli Mohamed told Shin Min that although the exchange rate was at a high, it was rare to find a money changer that offered the S$1 to RM3.15 exchange rate.

The money changer at Clifford Gems & Money Exchange in Raffles City Shopping Centre said the shop's exchange rate on Apr. 21 was 3.115, an increase from 3.08 last Thursday.

The money changer saw a 10 per cent increase in customers on Apr. 21, but some have yet to exchange their cash as they anticipate that the exchange rate would rise further.

After the reopening of the Causeway, he saw a 20 per cent increase in requests for Malaysian ringgit.

However, he believes that the number of visitors have not peaked, as most are Malaysian nationals entering Singapore for work, and not many are coming to Singapore to visit family or for leisure yet.

Nowhere near pre-Covid levels

Huang shared that business is only currently at about 40 per cent of pre-Covid levels.

After two years of minimal travel, Huang started to recoup her losses in December 2021 and began to bring in profits only in March this year.

"If there are no changes to the current situation, I predict that business might return to 50 per cent of pre-Covid levels between end-May to June, during the school holidays," said Huang.

But to return to 100 per cent, it would rely on China's opening, as Chinese nationals contributed to around 30 per cent of business, she added.

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Top images by Pexels and Shin Min.