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Uncertainties cloud ringgit’s true value
http://www.thestar.com.my/Business/Busines...alue/?style=biz

When v can expect those uncertainties disappear?

I thought with BNM intervention, certainty is restored at 3.80 ? Now despite oil price come down, we still pegged at 3.80. And because of that, RM appreciates against other currencies. Without BNM's invisible hands, it could have gone to 3.90 already

Honestly I feel calmer and that is a good thing. For how long I don't know lah...

that bit makes sense, so we only have to ask - are the politics of late improving or getting worse? is governance in handling public funds improving or getting worse?

there are also other things - inflation is creeping up:
http://www.tradingeconomics.com/malaysia/inflation-cpi
will gst cause slower spending to cause gdp growth to slow to prompt bnm to cut int rates?

there is no data at this time to support a stronger rm w/o bnm intervention. we wait for june-july exports, trade balance and fx reserves data - that will give more clues incl the first clues since bnm intervention.

uncertainties there will always be, esp external ones. it is a matter of how well prepared a country is, how to minimize the negative impact and not add more trouble to it.

btw... aussie, kiwi, russian, turk, brazilian currencies been battered too and they also say their currencies are way undervalued, fundamentals strong. who is to say they are right or wrong except free market forces?

Based on data alone
- reduce fiscal deficit
- better than expected GST collection
- removing fuel subsidy (which in return should reduce further the fiscal deficit)
- GDP growth although expected to slow down, still expect to be in the region of 5%.
- Despite slow down in export, still register reasonable well trade surplus.
- healthy banking system and at historical low NPL.

If one set aside that issues related to politic that affecting the sentiment of trade in financial market, the economy number alone suggests it is not too bad of the economy picture, that's why BNM governor said RM level is not matching the fundamental figure alone.

Fyi, RBA even RBNZ at times had been repeatedly saying their currency are overvalued.

DIVERSIFY currency holdings,.. that's the only way,..too hard to guestimate which is really strong and which is not, and which will be killed by sentiments and rumours alone,....

Holding other currency, yield zero interest generally, as most are near zero interest across.

So, diversify the asset allocation is preferred.

Eg.
If RM is depreciating, those export in USD will gain from the RM depreciation, so by holding those company shares, indirectly hedging against RM.

Same with holding foreign ETF, bonds etc.


This post has been edited by cherroy: Jul 20 2015, 05:46 PM

Avoid herd mentality as almost every Ppl said MYR is useless
Instead, sit down n wait for the dust to clear b4 action

80% may say rm is no good, there is also 80% not doing or unable to do anything.

what i am really concerned is if this is prolonged or gets worse than 3.80 eventually given we import mainly from these countries. it can get very ugly for the mid-low income groups if and when prices of food and daily essential rise dramatically in the next yr or so.

V can adopt 'wait n c' attitude since BNM is bz working right now

yes. which is why i am also, like others, quite happy that 3.80 is held up for now.

just not very hopeful it can stay like that for long given the shixxx we read everyday...

Yes, that's right,.. do not hold foreign cash, especially from developed countries. But buy and hold foreign assets that provide income.

Holding the cash may not be bad sometimes.
When doing cleaning up, I found out that I have 1000 Qatari Riyal that got them last year for rm950 which sold yesterday for rm1050. Gain rm100 with duration of 7 months. That's 10%
And still got 2000SGD that got for rm2.5 on 2013. If I change now, gain is about 15%
But then I can only gain once and with condition that rm lausai like no tomorrow

Ringgit extends gains against US dollar
http://www.thestar.com.my/Business/Busines...llar/?style=biz

1.00 USD = 3.80089 MYR
Still stuck @ 3.80 level

nice... "cheaper" if buying fx!

maybank still remain RM3.8540=1USD

1.00 USD = 3.78250 MYR
Finally < 3.80 level

first time reading this, no other source.


money changers must be hoarding plenty...

For how long? 1 week?