BNM cannot do anything ah =(

borrow in fx to defend yr own currency against fx... it is ironic, isn't it?

If forex reseves are strng, thn a central bank is respected and can act effctivly. Othrwise, no.

I call it desperation, hence, thecredit ratng will be affected, frther affecting the take-up rate. Letès see.

Wrong post..

This post has been edited by LDP: Apr 14 2015, 01:13 PM

rm gained over last few days as bnm did not cut opr as speculated. holding at 3.63.

post gst apr 2015, yet to see the effects.

just for the record:
http://www.thesundaily.my/news/1393061

why last time we can peg rm3.8=usd1

now cannot?

What if the rm dropping are controlled by some people?
Sure they don't want to see this to happens.

pegging is a 2-edge sword. it does not guarantee it is good.

if u peg to say 3.8 to usd, every time someone shows u with rm3.80, u must hv usd1 to change. if u dun hv, u r finished. that can only be done if u hv lots of usd on standby and confident no panic, not too many will change.

google n u will find some horror stories how some pegs did more damage than if they let it float.

more so now with so much global trade. no country can stand on its own, need to trade, need confidence of foreign partners, incl currency.

Wah lao this thread still hot

Your reply reminds me on negeri MB trying to bring few million out last time.

Any country has the rights to peg their exchange rate to a fixed value. It will be sustainable if the import/export balance can support it. But even if it is, it drives away lots of foreign investment due to loss of confidence as the currency is not longer traded freely, and the foreigners fear that the local BNM could abuse their peg and make them lose money, so will refrain from investing. Last time when we pegged to RM3.8, similar things have happened. And some foreign investment will pull out, and then demand the peg to be removed before they would even consider investing in Malaysia again.

Not a light decision to be made. But if too much speculations is happening, then BNM could do this again. But don't think it is a good thing to those speculators, because once capital control is in place, it is easy for BNM to observe who has lots of foreign assets and maybe they will consider these as not patrioitic. Small fries will probably escape notice. But rich folks can be observed closely and those deemed to be speculating the ringgit to fall will be badly regarded in the future.

why don't u ask BNM or Jibby

This post has been edited by nexona88: Apr 24 2015, 12:12 PM

Ringgit likely to stay at 3.5 level in medium term, says CIMB



http://www.thestar.com.my/Business/Busines...CIMB/?style=biz

Moody's rates it A3 outlook positive

http://www.thestar.com.my/Business/Busines...otes/?style=biz

http://www.thestar.com.my/Business/Busines...tals/?style=biz

This answer your question?

PS. At least now I know who you voted for.. the people that always say what you say (they have been saying that for at least 50 years) and it never turns out to be true


This post has been edited by wodenus: Apr 24 2015, 10:34 PM

There are three main ratings agencies. I would not trust thm even if all three gave it an AA+ (or the equivalence among the othr two). Moodys said outlook positive. Moodys said the same thing abt Bear Stearns and Lehman Bros one month before they fell, thn immdiatly changed the putlook after that, and the two companies fell.

Fitch said negativ.

I say stay away. No need to comment abt who I votd for for this is business. Diff frm politics.

This post has been edited by Hansel: Apr 26 2015, 10:28 PM

Those rating agencies are paid by speculators, so if you want Singapore to have DDD also can

Okaylah, we all can say wht we wantd abt the rating agencies. But without proof, thn no case-lah... What that concerns invstors is tht the mrket in general is always forward-looking, and one of the indics used by the market to do this are the ratings called out by these ratings agencies.

No speculations = no profit making