Better let the money stay offshore. JUst read in the threads that banks are beginning to limit withdrawals already.

do not spread rumurs!

the withdrawal limit thingy was from a foreign blogger; powerful ones want to sue him.
http://www.asiasentinel.com/blog/malaysias...-to-sink-najib/

unless someone experience withdrawal limits for real and report here, or reported officially, pls DO NOT SPREAD RUMURS.

AVFAN, look closely the past few posting,... I was not the one who mentioned this first. I merely implied on what I read in the postings in this thread. I do not spread unnecessities. However, havng said this, I am glad that I brought up this issue, which prompted a reply from you. Otherwise, many will be affected by this posting on the withdrawal limit.

i know.

i was the one who first posted the speculative article.

someone then posted:

If I want to withdraw my matured fd, cannot la?

you then posted:
JUst read in the threads that banks are beginning to limit withdrawals already


pls delete/amend yr posts unless u have other sources to confirm.

Hmm,... sorry to say this, but since you were the one who first posted this (didn't check back), you should have given some warnings in yr posting. It's okay, since you and I have clarified things, I think it's okay tht we go back to our normal discussion. No need to adjust here and there too much if we have nothing to hide.

Sorry, one more point : I did mention in another thread tht we should clarify first thing on Monday morning with the banks. That too, is strong enough to protect yours and my position.

This post has been edited by Hansel: Aug 15 2015, 06:59 PM

i did at with the article:

there was speculation traders were at work this morning which might just explain the spike to 4.123 at 11.05am.



anyway, we'll see next week how things will develop, what official reports, what the menteris will say.

mgs going to 4.25, 4.21 yesterday does not bode well.
http://www.bnm.gov.my/index.php?tpl=govtsecuritiesyield

If you know why Greece impose withdrawal limits, then you will know what you said is not true.

That is because Greece cannot print Euro, while Malaysia can print their own RM

Don't believe everything you read. Take a minute to think it over and you will not post what you have posted above

Please do not spread unfounded rumour that intend to spread fear, this is irresponsible act.

Even when 1997 crisis which was far worst than what we are experiencing now, there is no limit on withdraw from bank.
Capital control only imposed on 1998 was targeting only on money outflow to overseas, never on account withdrawal.

It makes no sense to impose withdraw limit from bank account, as it has no relationship to RM dropping nor can stem the RM dropping in forex market.
RM drop in forex market is because money outflow, not money withdrawal from account nor ATM.

If want to contain the speculative outflow of RM, a capital control is enough to stop it.

You need to understand why Greece impose withdrawal, because Greece is short of Euro mainly because they cannot print Euro on their own.

A half understanding can be worst than no understanding at all.
Do not blindly believe with "half understanding".

It is as same as previously people spread rumour that USD was going to be worthless due to trillions of debt, which urge people to rush in gold.

A "half understanding" and believe it, may dump all the USD and invest in gold, now may be suffering 30% losses, and miss the opportunity to reap current USD strength.

No such thing.

Please read above post.
Ty.

Bank liquidity is ample.
There is no short of cash in banking system.
Klibor market tells the story about liquidity between banks.

When a country or bank imposed withdrawal limit, it is about liquidity problem, not about forex market.

Do not be mis0construed in your comments, Showtime,... come on,... what nonsense are you talking about ? I would expect better of a forummer like you. Malaysia can print their own RM ???? Sure, theoretically,... but once this is known to the rest of the world, we are doomed, okay ? I do NOT believe blindly in everything I read,... I think it over first. It is you, instead who is believing in everything you read, including theoretical international finance, as in Msia being able to print its own RM. Sure, yes, theoretically, for not bound by any regional bank, as in the ECB. But practically,... you know better.

Please do not judge blindly.

Cherroy,

I appreciated your opinions, BUT NOT the first sentence. Read my posts in the above in my talks with AVFAN, and you can see why you are wrong in saying I spread the rumours. You know something, I wanted to let this case rest after AVFAN's final postingon this rumour subject, but since you brought up this wole issue again, I'll 'entertain' you. Well, I'll let it rest here,.. again see my postings in the above.

I know that Greece is NOT ALLOWED to, not cannot,... okay ?? They can do whatever they wish to,.. including wrangling their way around the rest of the EU trying to have their debts 'forgiven',... however, they are still tied by the rules of being inside the coalition. And one of the rulesis to abide by the rule of not printing the EUro, set by the ECB.

Backin 1997, we still had oil money. We could peg. We don't have that now. Let's see how far will the RM drop, that will be the best indicator if we are worst now, or earlier.

Next Fri, 21/8 will b interesting as BNM will announce International Reserves (IR) @ 14/8
If IR tank < USD90 bil mark, MYR will start to Tango

If one needs to ask such a question in the first place, it just means one already "start or have some sort of degree believing such an unfounded rumour" in the first place, which further seconded by the statement of effect of "Greek fallout could hit Malaysian in the same way".

Any informed and knowledgable in financial issue will straight away treat such a rumour as nonsense when reading such an unfounded rumour, won't need to ask for further details.
There is no logic of the statement need to limit withdrawal of account, it won't help the level of RM at all.

If said about capital control or other measures to reduce speculative activities etc, ok, it makes more sense.
This is the difference.

I am not saying you are spreading the rumour, but it is worrysome to see one needs to ask such a question in the first place.
With such a word or statement made and may soon be spreaded across over the net by ill intention person.

In EU, they use single currency, any monetory issues are controlled by ECB.
Individual country cannot simply print Euro nor imposing interest rate, all under purview of ECB.

Not allowed and cannot print the Euro, what is the difference?
Both also cannot print the money. Same.
They are seeking Euro money from IMF and ECB to pay their debt due.
If they don't play the rules of EU/ECB, they will be kicked out by Euro single currency and no longer can use Euro.

When a country is running at deficit situation, fiscal and trade deficit, it just means they won't have enough money left without printing the new money.


At the moment, Petronas still earning oil money ten of billion RM, it is not the like oil money is totally running out.

Malaysia imposed peg and capital control with just with foreign currency reserves amounted of less than USD 20 Bil. and able to survive through and resulted foreign currency reserves being replenished aftewards and keep on climbing up since the control.
I do not see why Malaysia cannot impose peg and capital control with USD 90 bil level.

If you have trade surplus with current account surplus, capital control + peg at low level can work to certain extent.

But capital control is a measure least favourable and should be treated as last resort option in a desperate time.

In term of fundamental and economy data, the state of economy at the moment is far better than 1997.
Just Malaysia needs to sort out some mess in political front, which is one of the major factor that sending negative sentiment towards RM.

Folks,

It is not exactly correct that BNM can print unlimited RM. 30% of THE GOVERNMENT's debt is held by FOREIGNER. If BNM, print more RM, RM will devalue. BNM has to raise interest rate or FOREIGNER will not buy more GOVERNMENT's debt and /or sell existing GOVERNMENT's debt. If THE GOVERNMENT imposed capital control, FOREIGNER will not buy additional GOVERNMENT's debt.

THE GOVERNMENT's deficit spending had reached a point where it need financing from FOREIGNER. It can no longer be financed solely by cash flow from EPF contribution.

Enjoy the show!!!

"Don't worry, be happy!!"

"Not too bad!!"

There will be enough DUMMIES investing in ASx to cover this holes because of the high dividend rate.

Dreamer

cherroy,

The KEY QUESTION is whether Petronas earn ENOUGH[U] Oil Money to cover the hole?? The answer is obviously NO. THE GOVERNMENT's debt is increasing at 40 to 50 billions per year every year for the last few years. This includes 2012 when Oil Price was at record high.

If in a NORMAL TIME, Petronas does not have enough Oil Money to cover the hole. It is OBVIOUS that Petronas does not have EXTRA Oil Money to bail Malaysia out in a CRISIS.

Dreamer

This post has been edited by dreamer101: Aug 16 2015, 12:23 AM

so... can't print easy, can't borrow easy, largest funds cashflow not enough, petronas $ not enough...

what do u think might be some of the things a gomen in that situation will do?

Your prediction didn't turn out to be true
However, I sure hope the ringgit stabilizes sooner rather than later

i think by wed, some major banks would hv made some reasonable forecasts.

daily mgs yield data and bursa activity might lend some clue to the direction and pace.



the problem is with confidence. over the weeks and months, there hasn't been any concrete move to combat the fall. a couple of ministers have simply said "it's all due to external", and all the absentee fin minister said was "excessive politics". how about doing something like immediate suspension of certain spending or repatriation of some gomen owned foreign assets? it's almost like saying "ya, it's like that, can't do nothing"!

bnm may be intervening but the fact that it has declared to the world there will be no peg, there will be no capital controls does seem to hint that the gomen is all ready and willing to let it slide to whatever level necessary. if that is correct, the rm will likely slide quite a bit more as just about everything is still working against it - sustained falling oil and gas prices, pressure from devalued rmb, worsening scandal politics. the only thing that might perk the rm up is the us fed hints strongly in next sep meeting that a planned rate hike is put on hold.

imo, it's still all looking very dark and gloomy...

This post has been edited by AVFAN: Aug 16 2015, 01:07 AM

AVFAN,

It is VERY SIMPLE.

THE GOVERNMENT is supported by

"Don't worry, be happy!!"

and

"Not too bad!!"

People.

There will be enough DUMMIES that will buy ASx. So, THE GOVERNMENT will have extra rounds of ASx to finance this. Then, THE GOVERNMENT will sell some of the GLCs via "IPOs".

As long as THE GOVERNMENT has the support of civil servants and FELDA settlers, it can stay in power. So, beyond the biggest GLCs like TNB, Maybank, and Telekom, it can sell a few to hang on for a while...

Dreamer

This post has been edited by dreamer101: Aug 16 2015, 01:28 AM