What Can We Learn From Credit Rating and Foreign Exchange Rate

There is a correlation between a country’s credit rating and its foreign exchange rates. For instance the credit rating of Malaysia, according to Standard & Poor, is A-.  The foreign exchange rates fare poorer against other countries with better credit ratings:

1 Australia Dollar = RM3.306 (AAA)

1 Canadian Dollar = RM3.165 (AAA)

1New Zealand Dollar =RM2.517 (AA)

1 Singapore dollar = RM2.477 (AAA)

1 Sterling Pound =RM5.022 (AAA)

1 Swiss Franc =RM3.384 (AAA)

1 US Dollar = RM3.199 (AA+)

 Selling rates of currency notes as of January 6, 2012, as quoted by Maybank   

Credit rating by Standard & Poor  in the bracket as at 29/11/2011

What do these countries with strong credit ratings have in common? The answer is E.S.P. It is likened to be their extrasensory perception:

·         Education

·         Skills

·         Productivity

Education

Most top-notch universities are found in these countries such as the United Kingdom, Singapore, Australia, and United States. Education is the number one priority in these counties. Education is to gain essential knowledge and knowledge is power. The more educated the people, the more knowledgeable and resourceful they are. Education supports the next generation to support the growth of a country.

Here are the  Time Higher Education World University Rankings :

Overall Ranking 2011

1.       California Institute of Technology (United States)

2.       Harvard University (United States)

3.       Stanford University (United States)

4.       University of Oxford (United Kingdom)

Asia Ranking 2011

3.     National University of Singapore (Singapore)

Australasia Ranking 2011

1.       University of Melbourne (Australia)

2.       The Australian National University (Australia)

3.       University of Sydney (Australia)

4.       University of Queensland Australia (Australia)

5.       Monash University (Australia)

6.       University of Auckland (New Zealand)

According to Phil Baty, Editor of the Times Higher Education World University Rankings, universities are the key to driving the knowledge economy. They can be the key to future national economic prosperity and global competitiveness, through the education they give their students…

Skills

These counties are always scouting for talents. They look for skillful people with expertise in various fields and it does not matter where they are from. When they can perform and contribute to the development of a country they are most welcome.

Productivity

Productivity is the creation of a simple solution that is efficient and effective.  As an example, getting in, going out, and looking for a parking lot at the AMK Hub Car Park in Singapore is a breeze because it has an automated ERP-like parking system. When you are at the parking bay, just look up and look ahead for green lights (vacant lots) among red lights (occupied). You can easily spot one green light without going round and round and wasting time. This is the result of getting an IT education and the skillful application of technology to achieve productivity. 

 

Take-home message

·         Value continuous learning: To stay ahead in this competitive world it is essential to learn and update your knowledge. There is always something new to learn.

·         Up-date your skills: Your skills may be outdated, it is necessary to make changes with the time to acquire the latest technology and embrace it.

·         Performance counts: To perform well, you must possess the latest information, know the latest technology and apply what you know to perform productively.