usd107 bil... anyone has any idea how much has been or will be used?

MYR have depreciated from 3.65 end of May to 3.80 now
I reckon BNM have utilized sizeable sum to support

we await june data in early august.

Firstly,.. ther are things called export controls and excise taxes. Export contrls and Excise taxes ensure that the locals get the benefits of cheaper goods first before the foreign countries. However, again we go back to enforcement of the comtrols and the collection of such taxes. If enforcement is not good, the locals will stil not get the desired results.

The above controls are similar in principle to Import Duties being imposed to protect the local manufacturers.

"Now USD vs RM become Rm3.80, there may be increase in demand for palm oil, as it become 20% cheaper. Increase demand potential higher price."

I do not think the above can happen, why ? For in the first place the increased demand is not totally becos of true increasing needs of the commodity, rather it is an 'artificial' demand because of the exchange rate. Hence, higher price WILL NOT have a chance to kick-in. The moment the price tries to go up because the sellers are trying to mitigate the exchange rate problems caused by the dropping RM against the USD, the 'artificial' demand will disappear, causng the price to drop again.

Sellers wil want to up the price when the exchange rate goes against them,.. becos they are not stupid too. The sellers would know how to calculate in order to MAXIMISE their profits. Secondly, do not forget tht the ingredients required to produce the commodity may be imported. Using yr example here, it would be fertilizers. If the RM drops badly against many currency regimes, thn the cost of fertilzers wil go up, increasing the cost of producing the palm oil. Increased cost means need to sell at a higher price again.

This post has been edited by Hansel: Jul 9 2015, 11:33 PM

1 exported gain, 1 importer + 9 consumers lose.

tourism... it will depend more on the underlying industry if it is well developed and thriving. thai baht may appr but will not see less tourist $.

weak currency can't be better than a strong. if there are some benefits, there will be 10x disbenefits.

if the reverse is true, why bother to wait - devalue 10% every year, reap all the benefits, no?!

this "weak currency = good" is syok sendiri only, imo.

It's "theoretical" to say when currency weakens, it benefits export.

There are hard facts which say otherwise, Malaysia exports have been diminishing :-

http://www.thestar.com.my/Business/Busines...fall/?style=biz

And the amount of export seems to get worse and worse.

This post has been edited by puchongite: Jul 10 2015, 09:28 AM

that is the point. too simplistic to say "weak curr = incr exports"; only politicians say that.

if the demand is not there or others can sell as cheap as you, may even decrease as per currently.

BNM supporting,

if not 3.85 edi

Just go US for a job.

1.00 USD = 3.7913 MYR

SGD still stable > rm2.80

singapore pipu happily spending their $$ in JB

Yup, that's right.

Will be going to the UK next year. So, am quite worried with the current situation. As of today 1 gbp= 5.88 myr. Do u guys think that the aforesaid currency exchange will be better by next year or worse?

Share the same sentimen. Might cancel my road to manchester trip if the currency not on my side.

BNM has drawn a very clear line this week. They will defend RM at ~3.80 to USD.

When the market sees this intervention long enough, 3.80 will be set as a baseline. Confidence will be restored, and less people will rush to convert / speculate the RM

However, I think this is only short term. If the people managing the economy continue to stage monkey shows like what is going on now, then long term the fundamental of the economy will be affected and the real value of RM will plunge.

If I were you, no hurry for the next few months. Take a look see position first. Keep in FD and earn some interest which may offset the depreciation. Eg. If you keep RM5.88 @ 4% in FD for 1 year, At the end of 1 year, it will grow to RM6.1152. In other words, even if GBP appreciate to 6.1152 1 year later, you will still breakeven

Expecting to touch rm6 by end of year
Better look for part time works over there

Yup, defend USD at rm3.80 but surrender to others
Good move to what that fat lady does to Malaysia's economy after FM

Ringgit seen undervalued based on economic fundamentals
http://www.thestar.com.my/Business/Busines...tals/?style=biz

1.00 USD = 3.79230 MYR
Not much movement today