currency wars...

china, followed by vietnam and kazakhstan.

next, possibly south africa, turkey, south korea whose currencies already badly hurt.
http://www.cnbc.com/2015/08/21/currency-wa...he-trigger.html

nobody thinks msia will devalue?

In fact, FDI will come in when MYR depreciate further
Imagine if US MNC were to invest USD5 mil in M'sia, it's worth MYR21 mil (@ 4.20) -v- MYR20 mil (@ 4.00)
The xtra sum of MYR1 mil is very handy coz it can finance opex/capex
If more n more US MNC q up to come in, M'sia will have a lot of USD

From Rm3.5 to RM4.16, already devalued... you still ask for more?
RM drop has been more than other people already, in other word, RM has been devalued already.

China, Vietnam currency trade band is controlled tightly by their central bank, their movement is not allowed to go beyond the range until it is allowed, so devalue or not is in the hand of their central bank, aka they are more and less being pegged one.

This post has been edited by cherroy: Aug 21 2015, 09:48 PM

i really don't know how these mnc's think when it comes to long term mfg investment.

i only notice some that i had biz with a few years ago quit for thailand and vietnam - no reason to do it here with imported foreign workers, might as well do it in that country.

One goods news (considered "good") is BNM foreign currency reserves just dropped USD2.2 bil, and stood at USD94 bil,
the pace of reserves shrinking is slowing down as compared few weeks ago, despite stock and bond market flee by foreign investors.

was just wondering only...

since rm lost <20% while some peers lost >30%.

u see no possibility our gomen/bnm thinks 4.16 is too strong need some devaluation to be more competitive?

MNCs care about cost of doing business here.
The cost of setting up factory, hiring engineers, operators, ease of doing businesses.

They are not investors but use the place as manufacturing hub.
They import semi finished goods in USD, export it in USD, whether the currency up or down, doesn't impact on their business.

When you run a business, the primary concern is not about the factory value will rise or not, but use the factory to generate profit through business.
If factory value rise, extra bonus,
if not, never mind, as the primary focus is to generate profit from producing goods.

Also, most industrial land are leasehold with 60 years nowadays, not something primary for long term investment.

Dollar Bulls Gore Emerging Markets as Euro Stops Fearing the Fed
http://www.bloomberg.com/news/articles/201...fearing-the-fed




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yes, that was better than i had thought.

now holding at 4.17.

despite mgs 10 yr yield closing at 4.33% today:
http://www.bnm.gov.my/index.php?tpl=govtsecuritiesyield

4.16 is weaker than others already, from peak of Rm3.0x, RM already devalued nearly 40%, as compared most other around 20~30% only.

We can see from Aud, one of weakest major currencies in the world, RM vs AUD weaken from 2.8x to now 3.0x.

Too weaker can kill confidence, and may lead to massive outflow, need to have some balance in between.

One of the best theory for low oil price was to weaken ISIS activities
Does tis theory hold water or just an illusion?

i doubt it, too hard to engineer.

same bull as 911 was self engineered.

This post has been edited by AVFAN: Aug 22 2015, 01:53 AM

What would the reaction be for USD vs MYR if PM suddenly change baton? Below 4.0?

Coming soon or just dream?

What ever it is, there is a possiblity, it is a factor to consider, esp when Dr M & Opposition have the same target. Just have to wait n see.

This post has been edited by MGM: Aug 22 2015, 08:17 AM

Time to switch currency to SGD ... Bought AUD, got some profit ..now going to switch to SGD since it's catching up to AUD.

i think it will about how smooth the change is and who will take pm and fin min posts.

market will likely get jittery at first, no good for rm.

and if the replacement is one with poor reputation and holding 2 jobs again, it won't be taken well with investors, things will get worse.

if the 2 jobs are taken by 2 people wih fair-good reputation and well versed in finance, confidence will soar, will be very positive for investors and rm.

Person with two job will have the advantage to allowed money flow in his favours.. I doubt Jibby will release his two titles.

I doubt there's such people in UxxO who have such good qualities.. all I see songlap kaki only

unless they take from "outside" like from corporate world

that is on everyone's mind incl biz people and foreign investors.
political wayang can no longer hide it.

and until major signs of relevant change emerge, banks and money changers will enjoy brisk biz in fx.