PM Najib says Malaysia will not impose capital control, peg RM to US dollar

When I saw the "Razak" the reply automatically come up. I don't know why

just saw this....
Kazakhstan's currency just lost a quarter of its value

The main reasons the minutes were viewed as putting off the date of a rate rise are the wish of several committee members to see more signs of pressure on inflation, and also the concerns expressed about further risks from abroad.

And this Fed meeting took place before the yuan devaluation rocked world markets in August. A line from the report stating: "several participants noted that a material slow-down in Chinese economic activity could pose risks to the U.S. economic outlook" caused particular consternation.

Yet the minutes did not, in fact "present a new, more dovish, posture" according to analysts at Citi, as they showed that the committee is still concerned about maintaining the current ultra-low interest rates for much longer. As a result, the analysts now expects even those spooked Wednesday to come back soon to expectations of a September move.

"Most importantly, the July FOMC discussion highlighted the potential difficulties in identifying and managing the emergence of new risks resulting from prolonged low rates," they wrote in a research note Thursday.
http://www.cnbc.com/2015/08/20/the-fed-mig...ember-citi.html

is china manufacturing driven...?? HK % S'pore...financial hubs? kena also?

yes...quite different...but are inter twined...guess 1 factor fall all related...different or not....but that is another thread lor.

U think BNM can hold on to USD90 bil mark? 

10 Currencies That May Follow Tenge in Tumble Triggered by China
http://www.bloomberg.com/news/articles/201...ggered-by-china

MYR in the list... 

1.00 USD  = 4.16 MYR   

Very soon I guess 😁✌

Highest so far

I am quite immune to the drop already. Like it is natural 

Even drop to 4.5 now is like nothing to me. Like "of course it would....why so surprised ?" kind of reaction 

The international reserves of Bank Negara Malaysia (BNM) fell further to RM356.4 billion (US$94.5 billion) as at Aug 14, 2015 from RM364.7 billion (US$96.7 billion) as at July 31, 2015.

So, 4.5 may not reachable, as we are generously subsidizing our RM now.

crude oil price is down now. When it rises back to $90-100 level, at 4.5 exchange rate, I am guessing Ron95 will be close to RM3/l. If the administration cannot afford to bring back subsidy, then high inflation can occur. Just hope that by that time, petronas can give more dividend to subsidize the retail petrol

Retail diesel is 1.95. Industrial diesel now can get around 1.55. We are already paying "petrol tax" quietly

In order to attract FDI to M'sia, our exchange rate must b attractive
At wat Level of USD/MYR (now 4.1815) will entice tis group of Investors?

Crude oil is a commodity that everyone will grab. If really no market, then should sell to us even cheaper price.

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.

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.

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