M happy if can reach 4.46

you're earning in USD?

Grass is not necessary greener on the other side.

Malaysia banks that are well run, their fundamental are not bad, in fact on par with some developed countries famous banks, and they may have lesser exposure to risky asset especially for the like exotic derivatives etc, due to Malaysia banks are more conservative compared to others developed country banks.

something to watch in the morning:

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.

Don't mind me asking, if China devalue their currency some more, would it put pressure on the USD or it will give the USD a boost?

rmb devaluation means devalue it against the usd.

usd is #1 world currency, not pressured.

smaller countries currencies having china as major trading partner will be - particularly malaysia, singapore, south korea.

This post has been edited by AVFAN: Jan 8 2016, 03:09 AM

You have either misunderstood the topic, or just finding excuse to sit tight with your RM

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)

Local banks have foreign currency account/time deposit, you can easily exchange RM to USD AUD, JPY, GBP and deposit into those account, while DCI is also easily available across banks to mitigate the risk of RM. You do not need to go to oversea to have a foreign currency nowadays to hedge against RM if one views RM is weak.

Foreign currency deposit in local banks are ten of billions and is still increasing, latest reported by the media, total worth more than RM70 bil equivalent.
http://www.thestar.com.my/business/busines...ggit/?style=biz

This post has been edited by cherroy: Jan 8 2016, 08:39 AM

It is an extra boost to USD.
Now USD is like the "king" of currency. Everyone devalue against USD.

When Yuan devalues, it put more pressure on emerging countries currencies.

cherroy has explained to you above. Hope you understand what he said. Be clear of what you want (as in the original question you asked me). You can achieve what you want with a local bank instead of flying out of the country

Malaysian banking system no problem? What a joke. If no problem will they keep on offering high interest FDs with lock in periods
A banking system has no problem when savings interest are < 50% from BLR/BR

strength of banking system is a basis for a stable currency but it does not "guarantee" a strong one.

rm has lost a lot more than the baht or even rupiah for many reasons we already know. basically:

.. thailand has similar debt like msia but is a huge consumer of oil/oil products - a lot to gain from low oil price.
.. indon has much lower debt but like msia is very commodity export based incl palm oil; raised int rate in nov 2015.
.. msia has china as major trading partner and china is slowing, rmb been devaluing.
.. msia has "bijan chronicles" that have not been cleared in the minds of investors, foreign and domestic.

This post has been edited by AVFAN: Jan 8 2016, 10:12 AM

That's what I am saying. Despite strong banks, our ringgit have fallen the worse in these region.

well, imagine what would have happened if the banks are in bad shape!


as for price increases, watch post CNY - some price increases will be shocking.

You also can have a strong currency, but a poor bank.

See how banks nearly collapse in those developed countries (even a few name famous worldwide well known banks) during 2008 financial crisis, despite with a super strong currency.
Greece also is using a strong currency aka Euro, so good to fly there to make a deposit?

You do not need directly go to overseas to mitigate the RM depreciation.
There are plenty of financial tool that can serve this purpose. eg.

1. Have a USD time deposit with local bank.
2. Invest in global UT that act as feeder fund to USD denominated mutual fund at overseas.
3. Invest in foreign equities directly, as nowadays there are many investment offering such a service already.
4. Invest in foreign ETF.
5. Invest in KLSE stocks that benefit from RM depreciation.
etc.

Well I am not in malaysia. So I can't keep tab of what will increase.

But I know last time I was back for Christmas, things are ridiculously expensive like normal pens!

rm lead among asian currencies to recover against usd.

down #1, up also #1!

now this is what you call volatile!