No I didn't buy anything today This morning, AUD drop to 2.89xx, SGD 2.82xx. But quickly went up

Last week, was expecting Aud to drop further, but BANG !! it went up instead. I actually missed the SGD/AUD parity because I didn't return call to my bank RM. Was asking her to call me if it went parity. Missed the boat

I think the whole of malaysia demoralised with US$/RM4. Very malu and angry. Everyone I met also Ptui Ptui Ptui !

From the man on the street point of view, everything imported and also Malaysia manufactured goods which use imported parts will increase in price. Ie. Your purchasing power is reduced ---> lower living standard

Definitely a bad thing for ordinary people

But business which export will make more RM selling overseas ---> good for bosses and government who collect more tax from these businesses

Are you a ordinary people or a boss who export overseas ?

Market always give surprises. With sudden twist of events, everything will turn 180 degree over night.

If suddenly Iran fires a nuclear bomb into Saudi Arabia tonight, next morning oil price will shoot up to $100 and suddenly RM become 3.30

Anything can happen

Maybe difficult to find business with >90% COGS local components because business now is global it may be cheaper to get imports. But there are companies which are mainly export oriented in USD like CPO, O&G, agri base like fruits, manufacturing like IT service, electronics.

Economics fundamental shows we have a current account surplus. So, export > import and RM should appreciate gradually as demand of RM > supply. But the real situation is

Zeti also give up already

This post has been edited by Showtime747: Aug 12 2015, 06:42 AM

Ya, if you talk about the whole of malaysia, only the selected few lucky ones benefit from the RM depreciation.

Minister talks about tourism, which only benefit the bosses in the tourism business if more tourists visit malaysia. They don't sell stuff based on US$, but still in RM. If tourist number don't increase, they don't gain anything. We have to wait for the tourist number statistics to come out to prove lower RM actually benefits tourism

For business, yes you are right. RM depreciate but at the same time crude oil and CPO price drop also, so what benefit is there for the big companies ?

I have a business which export to china. Initially late last year beginning this year we gain on weak ringgit. Profit doubled. But the last few months, the sales really slow down and we were only gaining on the exchange rate. Sales volume has come down. Still ok, but not as good as before when china market is still good.

I am sure there are businesses which enjoy the RM depreciation like those glove, electronics etc companies, but I feel that would be the minority.

Whereas for the average malaysian, their standard of living will be lowered. RM will buy less things in the near future. Wawasan 2020 need another 5-10 years only can achieve

CNY down, MYR follows down too Not much net effect between the two

I don't think BNM has the bullet to intervene anymore. They are helpless

Ya, free market is most efficient.

But they wasted >$10b reserve and yet ringgit drop from 3.80 to 4.00. The $10b could have solved 1MDB's problem (j/k )

If they allow ringgit to move freely, they should not intervene in the first place. And saved $10b

I think when the reserve dropped to $96b, they knew their reserve is not enough to fight the market forces, so they stopped. If the reserve touches $90b or $80b, the RM sell off will be even worse

So, as much as they want to stabilize their currency, they run out of bullet and surrender

This post has been edited by Showtime747: Aug 12 2015, 06:55 PM

So they wasted $10b of the country's reserve. That is close to the $11b 1MDB owed

Zeti should resign and strip off the "A+ banker" medal she received for the past few years

Ya with all the monkeys looking over her shoulder, I pity her position actually

Some more with the $700m transfer....really give her a hard time as a central banker

You may want to ask these two media if you have information contrary to theirs.

Do update us after you query them

http://www.themalaymailonline.com/malaysia...-reserves-slump


http://www.freemalaysiatoday.com/category/...ringgit-slumps/

I agree it is a tall order for a central bank to defend its currency using purely its reserve.

It is more towards psychology played on the currency traders. To smooth out the price, central bank gives warning to the traders that they will defend the currency, so please don't mess with me or you will lose out. I have 100b in the bank, how much do you have to fight me ?

Its like the Stabilising Manager in a IPO. If the forces go against the company, nothing can stop it. What it does is just give confidence to the investors and hopefully they believe and will not create a wave to sell down below the IPO price.

But on hindsight, BNM loss out to the market forces despite good economics fundamental and a fresh clean bill of healthy report card from Fitch Rating

I find that you are often not confident with your own comment. You can always state your opinion instead of phrasing your sentences in question form.

Just make your stance clear. Say what you want to say. I am perfectly ok with you disagreeing with me

History repeats. IIRC, prior to RM being pegged at 3.80 and capital control implemented during Asian Financial Crisis, there was a short period of time where RM depreciated very quickly to 4.8

It happens again now. We will remember this experience 10-20 years down the road

Please be considerate. I am looking after my chair, which may collapse anytime soon. Do you expect me to take care of you while I can't even take care of my own problem ?

Ya, do explain. I BTC cannot read between Zeti's lines

If you know why Greece impose withdrawal limits, then you will know what you said is not true.

That is because Greece cannot print Euro, while Malaysia can print their own RM

Don't believe everything you read. Take a minute to think it over and you will not post what you have posted above

The more you wrote, the more you expose yourself you have very little knowledge on economics.

Cherroy has explained what you need to know. Google more if you still do not understand

Don't be so defensive when people pointed out your mistake. He is actually spending time teaching you. You are actually benefitting

Unker,

The rumour says that "the bank is imposing rm3k withdrawal limit" like what Greece did. That rumour never thought of the difference in central bank's function of Malaysia and Greece.

Malaysia can print money, Greece cannot. So the rumour is busted

RM devaluation is just the collateral damage of printing money. But if Malaysia want to, BNM can print unlimited RM, just like Zimbabwe.

Not their concern at the moment. Their concern now is their chair in the office.

If they don't take care of their chair in the office now, soon they have to worry about the chair in prison cell

If I am in their situation, I would have done the same thing