Malaysian Ringgit and the Singapore Dollar (SGD) are the most vulnerable currencies to the devaluation of the yuan, said Standard Chartered Research.

Malaysia, besides the Philippines, also has the highest exposure to China in terms of exports and so is most exposed to the weakness of the yuan, the research house said in a report today.

http://www.theedgemarkets.com/my/article/r...ed?type=Markets

as the world gets globalized and money and information goes at speed of light, the idea of pegging and intervention is way past obsolete.

such futile attempts will only hurt you more.

even the russians did not try - they know "resistance is futile", so they just managed with interest rates while expecting the economy to slump, which it did - in recession now.

worse cases - venezuela, ukraine and greece... which u already know.

i am not sure our menteris understand it.

So they wasted $10b of the country's reserve. That is close to the $11b 1MDB owed

Zeti should resign and strip off the "A+ banker" medal she received for the past few years

no, i dun blame zeti.

she did what is expected of her - from the cabinet and the people at large - to try.

but i think she knows it will not work.

more so when there is no way to know what the largest central bankers in usa, eu, china and japan will do.

did not u not read the numerous posts saying "we can peg", "we have plenty of reserves", "this is not 1997" and "even soros dare not come"?!!

Ya with all the monkeys looking over her shoulder, I pity her position actually

Some more with the $700m transfer....really give her a hard time as a central banker

Yeah going down to 3.958 in xe.com

What happen pulak now? They are selling USD coz afraid more CNY devaluation?

I'm not forex trading but I can feel your temptation. But this "drop" from 4.03 to 3.95 seems weird. What's your take?

woah suddenly @ 1.00 USD = 3.95 MYR

http://www.xe.com/currencyconverter/conver...From=USD&To=MYR

This post has been edited by nexona88: Aug 12 2015, 08:41 PM

good for u but bad for those thinking of stop @ 4.10

I closed my position @ 4.01 tis afternoon

wow..you guys stock market also pro..now forex also pro..
really salute

How you know $10bn reserve was used to buy myr and not for certain bond or unit?

I think someone monitoring all we post here..

1.00 USD = 3.98 MYR

would reach back @ 4 MYR next few hours?

This post has been edited by nexona88: Aug 12 2015, 10:17 PM

I don't think there is anyone in any central bank who believes they can stabilize their currency.

It is pretty well known that central banks ability to influence their currency's exchange rate versus the market, is very limited. Apart from pegging.

The only exception is probably the Federal Reserve, but that's not so much due to them but the fact that their currency is effectively a world standard.

You may want to ask these two media if you have information contrary to theirs.

Do update us after you query them

http://www.themalaymailonline.com/malaysia...-reserves-slump


http://www.freemalaysiatoday.com/category/...ringgit-slumps/

To be fair, BNM also cannot do nothing if speculators start to pile up against your currency.
Need to give "warning" to market, "don't play too far".

We do not know how much exactly was used to "defend" the RM at Rm3.80.

With capital flight from stock market and bond market, the foreign currency reserves surely will go down, as those capital when remit out, they will drain the the BNM foreign currency reserves.
Investors sell off share or bond, take RM in cash, go to bank to exchange to USD, then BNM needs to use the USD in foreign currency reserves to pay them.

To b fair, one of the factors MYR depreciate tis week was due to PBOC devalue its currency twice

I agree it is a tall order for a central bank to defend its currency using purely its reserve.

It is more towards psychology played on the currency traders. To smooth out the price, central bank gives warning to the traders that they will defend the currency, so please don't mess with me or you will lose out. I have 100b in the bank, how much do you have to fight me ?

Its like the Stabilising Manager in a IPO. If the forces go against the company, nothing can stop it. What it does is just give confidence to the investors and hopefully they believe and will not create a wave to sell down below the IPO price.

But on hindsight, BNM loss out to the market forces despite good economics fundamental and a fresh clean bill of healthy report card from Fitch Rating

What is the chance for zeti to announce her retirement at tomorrow news conference?