Banking system is the least of our worries. Imagine myr becomes as bad as rupiah. Heck, even rupiah outperform us.

Is not the bank problem. But the value of our ringgit. Rupiah and bhat have managed to do better than us. Even if you have the best banks in the world but with a s*** currency, you are becoming poorer as sooner or later, things in your own country will increase to match the high foreign  currency exchange. All basic necessities will go up.

I think you misunderstood me. I was replying to cherroy. He said there's no problem in malaysian banking system. Saying some of our banks are on par with developed countries bank. So I said what's the use of best banking system in the world if your currency loses out to indon and Thai?  In the long term, keeping money in Malaysia will make us poorer (price of stuff increases to match usd-myr exchange rates)

New Currency Declaration Requirement at All Entry and Exit Points of Malaysia

In line with the global effort to combat money laundering and terrorism financing, effective 1 January 2010, travellers entering or leaving Malaysia with cash and/or negotiable bearer instruments (e.g. traveller's cheques, bearer cheques) exceeding an amount equivalent to USD10,000 must make a declaration in form Customs No. 22. The forms will be made available at counters located before the Customs Checkpoints at all entry and exit points of Malaysia.

This is a requirement under section 23 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) and is in line with the Special Recommendation IX by the Financial Action Task Force which requires countries to have measures in place to detect the physical cross border transportation of cash and negotiable bearer instruments. Travellers could be fined up to RM1 million and/or face imprisonment not exceeding a term of one year if they fail to declare or make a false declaration.

USD MYR on magic express again???

china impt data today ok, everyone happy.

oil and other commodities recover ok.

hopes of new china stimulus.
but all that... usually does not last very long as the data is not stellar.

plenty of weakness elsewhere, incl crude/oil.

and bijanomics is not doing anything real.
so, the rm is not going anywhere.

may be back to 4.40 by tmrw morning.

it's going higher

1.00 USD  =  4.40070 MYR

19 Jan 2016 14:20 UTC - 20 Jan 2016 14:24 UTC
USD/MYR close:4.39347 low:4.35739 high:4.40569

1mdb asset sale money coming in slowly in the day time?

hope it stays that way for the few days!

rm gained 2% vs usd today.

oil recovered 6% since last night.

but it was this surprise SRR cut that actually boosted the rm:
so, what happens next?
i bought some usd today.

liquidity does not matter when fx leaves the country?!

i think u r so very capable of defying everything!

this fella in ocbc should be sacked, employ u!

'Ringgit expected to sink further beyond RM4.50 to the dollar'
https://www.malaysiakini.com/news/327890

yes, i am of the view today's srr cut led to improved liquidity->incr confidence->incr fx inflow->lower mgs yield, rm appr.

add oil price +7% within 24 hours has an effect too.

it is timely becos banks have been offering higher fd rates to meet their deposits/loans ratio.

more liquidity also = more credit, more spending, more gorengs, higher klci.

but this has limited if not opposite effect if they cut again when there is no liquidity issue.

clearly u disagree with above since u said what u said.
i think better this way... today bnm closing official: 4.295/4.304, say 4.30.
http://www.bnm.gov.my/?tpl=exchangerates

let's give it until 31 mar, end of 1q2016.

if rm is 4.20 or better, i quit this thread.

if rm is >4.40, you quit this thread.

if somewhere in the middle, we can hang around and talk some more.

deal or not?

hey, time we need closure, be answerable to ourselves if we got it all wrong or all right.

and not continue to mislead others.

ok or not?

i am not so sure if my view or yr views contradict laws of supply and demand or economics.

you believe in magic and hidden hands, remember?

ok, let's rest, wait and see.

SRR cut surely incr money supply, everybody knows.

But in a tight liquidity situation, it helps credit markets (help retrenched workers, o&g cos.), incr spending, and not choke it to make things worse. foreigners confident, buy mgs/bursa, rm up. to an extent only. i already said that, u can't follow?

whatever magic u mean, i still say it is not big enough to be material, has only a small and temp effect.

still not there yet? hurry up!

i'm at where i want to be.

if 5-6 bil can't do it, then 1mdb assets sale of 2.3 bil to china will do even less.
well, bloomberg seems to think the srr cut had an effect like i thought.

that is true, but i did see something to that effect as well on bloomberg tv.

I'll just weigh in this a little on an alternative view. Now the SRR cut can be viewed as a pre-cursor to a potential rate cut moving forward (despite the statement by BNM that SRR has nothing to do with their monetary policy stance). What happens to the prices of bonds when the market expects a rate cut? And if you know the expected direction of price and you are an off-shore fund, what do you need to do in the FX market?

The market has been pretty long for some time now, so partially the drop today was driven by position cuts too, as well as oil rallies throughout the day.

Everything else, you guys got it covered pretty well.

Summarise, "ride the wind" is the strategy. 

Where's the analysts said oil is finite resources and oil price only has one direction ie. up?

In the short term, the market is on random walk. However, long term economic equilibrium always prevail.