how low will the rm go?

how will it affect the rest of the economy?

why doing nothing will be a bad idea?

a clue may lie here - study brazil closely.

msia's situation is not all that different from brazil, imo.

good read:

This post has been edited by AVFAN: Sep 24 2015, 08:29 PM

Now i feel like spending all my FD finish because it seems no point saving with lesser gain only

I can be yo companion
Just PM me

Not yet finish meh? I thought you say your FD money finish ady

better spend all your FD to "help" BolehLand economy

23 Sep 2015 12:45 UTC - 24 Sep 2015 12:59 UTC
USD/MYR close:4.44000 low:4.34660 high:4.44000

Bad Luck no

The currencies of South Africa, Turkey and Malaysia -- countries identified by markets as deserving a credit-rating downgrade -- declined.
http://www.bloomberg.com/news/articles/201...hai-baht-slides


Brazil GDP and natural resources is much larger than us. If Brazil gomen bond could be rated junk, there is nothing to stop our gomen bond to be similarly rated junk.

This post has been edited by icemanfx: Sep 24 2015, 10:10 PM

Interesting observation - but how do we explain that ? Or simply coincidence ?

There were people saying this for 2012 doomday approaching time, dooms day already why save money, spent all on whatever you like.
Now, may be struggling to repay all the money spent...

Every crisis always got silverlining and opportunity, but if without money/capital then one won't able to capitalise it.

Situation is challenging, but not the end of the world.
If RM is depreciating then the money can be used to invest into something that has inverse relation with RM depreciation.

SGD

There are a lot more actually, even with local RM denominated investment.

Eg.
Global UT that invested in overseas asset primary in USD.
Local company that has asset overseas in foreign denominated currency particularly in USD one.

Having said that, USD won't forever appreciate one, there may be a point of shift or changing, as world economy and financial market is not one way street forever.

So a better diversification asset is always preferred to mitigate those risk.

So basically anything else is better than myr.

Don't dream... How we can pegged??? Federal reserved is fall below and we use what to pegged? Pegging means every 1 USD (if pegged 4.50MYR and market price is 5.00MYR), as bank negara will needed to pay the difference... For example, you buy USD 10 from ebay and bank negara will needed to compensate every 0.50MYR per dollar...

This is what we called pegging and not as simple someone said that easy... Every dollar that we spent will be cover by bank negara... Zeti governor cannot decide on this and only FINANCE MINISTER can do so... If pegging is happen, investor will leave and not buying anything from us due to pegging is higher price to them.

Agreed 4.5 soon I think. Not sure if Zeti will raise rates. Need to see strong growth and inflation before that becomes a sure bet. Other options = sell reserves, use swaps or capital controls. All three have bad implications though (very bad for capital controls). Also remember that our govt bonds have huge foreign ownership. So when they mature, or investors sell, MYR downtrend has a lot more legs. They need to restore confidence, start by fixing the political scene and 1MDB.
Tl;dr sell sell sell ringgit now! Rates to stay the same near term.

At the rate MYR is going, I think the govt should implement Capital Control. Currently many biz are affected, esp those who buy in USD and pay in credit, currency exchange loss would have kill the biz if it continues. The 1998 capital control turned out well, didn't it?

This post has been edited by MGM: Sep 25 2015, 07:04 AM

MGM,

Malaysia had Extra Oil Money in 1997/1998. Now, Petronas has cash flow problem and need to use its own cash reserve.

Enjoy the show!!!

It will not be like any crashes that Malaysia had before.

Dreamer

May be it is time to call all GLC n Malaysian abroad to do a National Service and to sell their foreign assets n repatriate back to Malaysia (~rm1 trillion).

Later k

Oh shoot

Imported inflation may rear its ugly head
http://www.theedgemarkets.com/my/article/i...r-its-ugly-head

Consumers will feel the heat in 4Q15

they have promised to the world the won't do that.
if they do that again, the little confidence left now will go to zero.

these glc's more likely have been sending and keeping money abroad like 1mdb.


let it be free float, free fall, free rise to reveal and reflect all true strengths and weaknesses of the rm - fundamentals, governance, future outlook, investor confidence, etc. gomen have been claiming "strong fundamentals", now is right time to prove it, be it 4.0, 5.0 or 6.0!