Ask yrself back, if crude oil is usd 10 / barrel and you are oil producer, would you want to sell it
at this price or hedge this oil price to your customer ? Be more SMART a bit..

Don't get too caught up by this interest rate parity thing.

Int Rate Parity


"In recent years the interest rate parity model has shown little proof of working.

In many cases, countries with higher interest rates often experience it's currency appreciate due to higher demands and higher yields and has nothing to do with risk-less arbitrage."


It makes perfect sense and is common practice to raise interest rate when trying to prop up a currency.

Example: From 2008 to 2011, interest rate in Australia was much higher than in USD(dunno exactly how much but rates in Oz has always been high) and AUD strengthened significantly against USD.

Forex market has too many variables going on for it to be simplistically predicted by int rate parity.

Is it a good time to change most of my foreign currency now? I.e. My sgd... Got few Thousands in hand...
Or just keep monitoring?

Hav not counted the above personally, but I wld not doubt the calcultions which said that over a longer period of, as per eg abov, almost 20 years, the RM wld win,... why ? Becos back in the 'earlier yrs', the spread in the SGD-RM exchange rate was not as wide as what we have today. I recalld the SGD startd to 'run further and faster' away from the RM frm around the mid-range of 2000-2010.

I do not invst in only currencies, yes, I do diversify, into SG stocks and north amercan stocks as well. Not forgetig some othr instruments too. I chase passive income, with a strong focus on fixed income and cashflow-generating instrumnts.

IF it's me, I wld not change back my SGD and USD. I wld go for SGD-based and USD-based investments to generate more SGD and USD. I will only convert back the cashflow that I managd to generate.

just got this from the web....



Attached thumbnail(s)

in hand = not growing (except MAYBE from exchange rate appreciation)
then read page 21, post 415....
(Remove the "interest rate earned" from SG bank bcos yr money in hand will not hv interest)

according to news report, Revenue from pilgrims makes 3% of Saudi GDP. some about (USD 16.5 billion) yearly


how they calculate

Your few thousand is during which time?
Keep those misleading theory aside, to know your actual gain, you need to know at the price you bought, if you got it at rm2.50 last year, then selling it now at rm2.75 for SGD1000, your gain is 10%.
I have a friend that earning USD in Qatar, last year only rm3.20 and now rm3.75. He just change it back to rm for USD20000, that's rm11000 of gain.

Is still quite a lot. Now they are building world tallest building, so it will become another attraction.

yeah, tourist attraction.. anothers source of income

But as long as rap case high and women cannot drive, it still a setback.

few thousand sgd in cash...

if u want to buy some imported stuff, not a bad idea now to change to rm, before prices increase.

good time or not, who knows? some blame it on m... so, if m's attacks get stopped somehow, rm will strengthen auto?!

sorry, i did not make it clear that my SGDs earned are frm running a business there...
i have zero expenditures, is mostly dealing with collecting and paying cash (paying out is usually a rare occasion)..
some of u might already know the gist of it already

what kinda investments are u talking about? got some examples i can google on?

and what ure actually suggesting? putting it in a FD?

So, it means it is "fresh" money every month, right? If yes, then is no difference.
Putting in Malaysia's bank FD will be yielding 3-4% a year. Investing in shares or trust funds are not really a good idea considering current situation. My auntie that used to look for Datuk's money for trust funds also starting to look for relatives to dump money.
Keeping cash in FD still the best way now, as when you need to use the money, your rm1000 still rm1000. But in funds or shares today you put rm1000, on the spot you lose out ~rm100.

So how MYR performance would be for next week?

google and found this
"Strong BUY"...according to this
http://www.investing.com/currencies/sgd-my...cal?period=week

unable to interpret the Technical indicators and summary from it...
"strong buy" means...investors are encouraged to buy SGD or MYR?...
any idea?

This post has been edited by yklooi: Jun 14 2015, 09:13 PM

Test 1USD = rm3.80 and 1SGD = rm2.85

woah so "deep" the info

I think should be "Strong Buy" on SGD

for those in MYR Income

and for those income in USD & SGD

This post has been edited by nexona88: Jun 14 2015, 09:45 PM