Speaking on the sidelines of the Institute of Chartered Accountants in England and Wales (ICAEW) 2017 Economic Outlook – New Realities Affecting Malaysia’s Economic Success briefing yesterday, several experts expect the ringgit to strengthen to RM4.00 by the first quarter of 2017.

The ringgit stood at RM4.43 against the US dollar yesterday.

“I think the fundamentals surrounding the economy are very strong. In terms of external trade we are doing very well. The price of oil has gone up and commodity prices, such as that for palm oil, are relatively stable,” said International Trade and Industry Ministry former senior director of Asean Economic Cooperation P. Ravidran Palaniappan.

Asean-India Business Council co-chairman Ramesh Kodammal told theSundaily thay he too expects the ringgit to strengthen to RM4.00, by the first half of 2017, as commodity prices are moving forward.

TheSundaily quoted him as saying that with the ringgit at the present levels, Malaysia is an opportunity for investors around the world as it has one of the best infrastructures within the region.

On Bank Negara Malaysia’s new policy requiring exporters to convert 75% of export earnings into ringgit, ICAEW economic adviser and Oxford Economics lead economist Priyanka Kishore said it will help stem the downfall of the currency.

However, she said, the ringgit’s depreciation is driven by US dollar strength rather than domestic economic fallout and the prospects of a fiscal boost in the US is expected to continue supporting the US dollar.