By Lim Sian See
The Ringgit has remained non-tradable and non-convertible outside of Malaysia since 1998, which coincided with its pegging to the US dollar, a restriction that was not removed when it was de-pegged in July 2005.
Some Malaysians are still unaware that the Ringgit is of no use out of Malaysia and foreign banks will not change your Ringgit, as most will just use their credit cards but there are times when credit cards are no good and when you need cash of the local currency.
Under capital control our Ringgit is not accepted out of Malaysia and if you were to travel it is suggestted that you carry enough foreign currencies like the USD or the destination currency of your travel as it will be difficult to convert your Ringgit and foreign banks will not take your Ringgit.
You will have to seek out “street changers” or money changers and will have to find the right one who will take your Ringgit than when you find the right changer, it will be at a very much discounted rate.
Thanks to Mahathir capital control was imposed since 1998 which have effectively retarded the Ringgit. Which is clearly reflected in the fall in Foreign Direct Investment since capital control was imposed.
As it is legally non-convertible at foreign banks, supply of Ringgit notes is dependent on how much the street changers or money changers have in stock.
Thus it is not-surprising that ONE money changer may not have enough stock and hence POA, which is a generic term to say “Please check with us first”.
If you really wanted to get foreign currencies using Ringgit overseas, better you use your Malaysian Bank ATM card and use PLUS to withdraw from foreign banks ATM as this is allowed and legal since the Malaysian banks can then track how much Ringgit you have changed and flowed out of Malaysia.
Understand more: http://hawkeyejack.blogspot.com/…/03/ringgit-not-wanted.html