One of the reason for not pegging the USD is also to prepare for possible US Fed rate hike.

In fact, USD96 bil is nothing to shout about
Tis yr, our reserves of USD96.7 bil is about 30% of GDP
In 1998, our reserves of USD26.2 bil was about 36% of GDP

Either way I see RM stabilize at 4.2 and not going any higher. Also 7month of reserve more then enough to pass through the economic downturn. Not too sure why so many are worried as by 7 month crude oil price would have recovered

i guess many people wants usd to continue to go up because they got their usd at 4.x. if ringgit recovers, less profit or have to wait for a few years for ringgit to fall

Sure or not? If another "skeleton" got reveal some more, what happen? How sure are you crude oil can recover? If China devalue their currency some more, you think the RM can stabilise at rm4.2? Malaysia is getting hit by 4 sides. Strong USD, devaluation of yuan, low oil prices and internal problem.

The way I see it, the Saudis are at war with US. US have shale oil. Saudi and US are fighting to see who will bleed first. Shale oil is only profitable only if crude oil is above usd30. So the Saudis need to make sure oil is below that price that to undercut US.

And Saudi already said they are not going to reduce production but instead increasing production. The current increase in crude oil is short term. Sure of it.

Don't worry. Everything is fine. We still have lots of reserve. Tourism and export will increase. Be happy.

Based on previous post, exports are not increasing but actually decreasing.

Double post

This post has been edited by Ramjade: Sep 2 2015, 11:10 PM

Balance of Trade between EXPORTS and IMPORTS .

EXPORTS > IMPORTS = TRADE SURPLUS http://www.tradingeconomics.com/malaysia/balance-of-trade

Check the few pages back. I read it somewhere. China is very weak now and they happen to be malaysia's largest export market. You tell me how is export going to increase when China is not buying anything from US due to their economy.

Year End Target for USD/MYR?

Usd 4.2 if nothing change. Usd4.7 if more "skeleton"revealed, China devalue their currency some more or US decided to increase rates (US now thinking whether to increase or not due to China)

Trade Surplus is finished goods export out from Msia is more than what we imported from other countries.
In term of trade / economy, money receive from the goods sold is more(exports) than money payment for the goods imports.

Fundamentals r gud But Trust Deficit is ugly

So long haven't heard of the word

Trust Deficit

Not sure about China and USA but more "skeletons" appearing at home seems almost certain.

skeletons... more like bone dust, not to be identified!

don't worry guys, it's comeback time.

Agreed.

Should worry start doing something.

2 Sep 2015 02:40 UTC - 3 Sep 2015 02:41 UTC
USD/MYR close:4.22670 low:4.18797 high:4.23597

Still steady right now
Awaiting announcement from BNM on 4/9 to c direction of MYR

So how much is the Trade Surplus able to prop-up our foreign reserves ?