Tq bro,...

I don't really need to be overly concerned abt the USD, except when I wished to convert more of my RM over. I just need to ensure I have established myself successfully in the land where I intend to build my life in. The currencies and the instruments that I hold have too weakened against the USD, but the weakening is very much lesser than what the RM has suffered.

Anyway, I do hold USD assets and instruments too, and can leverage on this should I come across any shortage anywhere.

Yes bro,... certainly can't discount out on any possibility in life,... BUT we have to take a chance somewhere else, since we are in bad shape ourselves. Given the proximity of Singapore, it's a good place to start with. We can always travel there if we need to attend courses or need to do anything too.

If you compare the SGD against many currencies of the world, you will see on a long term basis, the SGD has appreciated against many currencies of the world.

Edited spelling mistakes.

This post has been edited by Hansel: Nov 30 2016, 03:09 PM

Finally,...

From Bloomberg News :-

Non-OPEC : Russia, the biggest producer outside the bloc, had previously resisted calls to trim its production, insisting it would only consider a freeze. OPEC plans to hold talks with non-0PEC producers next week in Doha.

And then : The strength of the deal will depend on whether all parties deliver on their commitment. Saudi Arabia and its Gulf allies, the U.A.E. and Kuwait, have traditionally stuck to their cuts, but some others haven’t, particularly when prices are low. Any doubt in the market could once again see prices come under pressure.

And moving on : The group will meet again on May 25 next year, at which point it intends to extend the cuts by another six months, Qatari Energy Minister Mohammed Al Sada told reporters in Vienna.


Life is good for the oil ministers,... always meeting in Vienna. Nice city, beautiful people,... why can't they come to Asia for a change, meet in KL, perhaps ?

RM IS STRENGTHENING,.. A GOOD EARLY SIGN,...

Only if we're invited. We need to monitor the news to see if Msia is invited. Anyway,..... I don't think Msia's production matters much. Wouldn't skew the world production that much,... just like Indonesia's production won't affect much.

No bro,... it is never wrong to hold the USD from now,... You must know the intention of ecstasy on this rise,... many will exit at a certain level. We are only hoping that the rise be big enough for us to exit the Ringgit,...

Don't really know,.. when my graph starts to turn,.. I will buy convert out already,...Tendency is very high for the Ringgit not to be able to sustain this momentum,....

Bro,... you're talking abt me ....

If you compare yesterday's graph with today's graph, it is strengthening,...I'm trying to scrape every single unit of strength of RM can muster,.. I'm literally 'counting beans', bro,....every single strength, if I sense the momentum is dropping, I will sell already,...

I'm not hoping for last month's level anymore !

The RM troughed down early this morning and immediately re-spiked up !!! The cross-currencies have been slower in responding,... This is the time for us to buy-in,.. eg the AUD.

https://finance.yahoo.com/chart/MYR%3DX#eyJ...nZSI6IjVkIn0%3D


Compare with the AUD here :-

https://finance.yahoo.com/chart/AUDMYR%3DX#...nZSI6IjVkIn0%3D

If you are keen to load-up on the USD, you have no window to re-act. However, if it's the AUD you are after,... then there is time to buy.

This post has been edited by Hansel: Dec 1 2016, 12:08 PM

Bro,... with this type of environment, you give 10% also nobody will buy the sovereign bonds. Asset prices are good now overseas,... better scrape all I can to convert out to buy overseas assets,............. and certainly before the doors are closed.

With DT as the world leader, many doors will be closed !

Bro,... I know that !!!!!!!!!!!!!!!! Why do you think I stayed up every night and keyed-in the movements into my program to monitor the momentum ? I buy the crosses, not the USD !!!!!!!!!!

...okay bro,.. no, I'm not !! I hope I can develop a good mathematical model only, then give to the world.

Yeah,.. assuming the above is true,.. then if the RM happens to strengthen below 4.45, say to 4.30, the peg will be wasted.

Bro AVFAN,... this is a very, very important piece of news,... tq for alerting us.

So,.. Citibank Labuan has given up ! Don't wish to operate there anymore !

The Constitutional Referendum in Italy will be held this Sunday,... if Italian lawmakers choose to exit the EU, will this hammer the RM down further ??

Bro,... if can get a job there legally,... don't ever hink of coming back. Stay there,.. can go back to visit,... it's okay,... don't go back to stay, bro,...don't ever earn the lousy Ringgit again !!!!!!!!

Morning, gents,...

I would interpret #10 exactly as is written, ie if no borrowings, then can invest without limit in onshore assets. In this case, FOR OFFSHORE ASSETS, since it is silent on this clause, then status quo remains, or follow the relevant statements in the article by Sesshoumaru.

I think the recent rulings are more targetted towards exporters only, for the bulk of it comes from this group. I think for private investors, no so much focus,..... yet.

But having said the above, I really don't know when will the turn for private investor comes,...

I did think of the above tactic too, with regards to exporting companies, until I came across the following excerpts. In fact, I recalled somewhere that is is not legal to park proceeds in overseas financial institutions after collecting payments from overseas customers.

" At the moment, exporters are required to bring back their proceeds into Malaysia within three months of completing a transaction. However they are allowed to hold the proceeds in foreign currencies. "

Meaning, previously,... exporting companies are allowed to park their proceeds in the foreign currencies that they collected their payments in, ie no need to convert back into the RM. This proceeds are to be kept in local FCAs - Foreign Currency Accounts, be it in the USD, AUD, etc,...When kept in local FCAs, BNM will still 'have control' over this money.

As of yesterday, and effective from Monday onwards, BNM has imposed an additional ruling onto the money kept in the FCAs :-

" Among the measures are that exporters are to convert 75% of their proceeds into ringgit effective Monday. "

Hence, mathematically, 75% of the FCA amounts will be CONVERTED into the RM NEXT WEEK ! , indirectly, buying the Ringgit and selling the foreign currencies, especially the USD !!! What is the boost here then ? According to calculations by BNM :-

" The amount held by exporters in foreign currencies is estimated to be closer to RM90bil. At current exchange rate of dollar and ringgit, the gradual conversion of the export proceeds could result in Bank Negara’s reserves increasing by more than US$18bil (based on an exchange rate of RM4.44 to the dollar). "

Adding USD 18Bil to our current reserves of USD 96Bil is adding 20% strength onto the Ringgit, ie, again, mathematically, the Ringgit should strengthen by 20% against the major foreign currencies by end of next week.

And what is the early effect seen ????????????

" Bank Negara’s measures were immediately felt in the offshore market. For the first time in recent weeks, the ringgit strengthened against the US dollar in the offshore market closing at RM4.44 yesterday evening. In the domestic market, the ringgit closed at RM4.45 against the dollar, weakening marginally. "



Any opinions, forummers ??

Edited : Sorry, forummers, forgot to add the link of my source,... lest you guys think I made up this story : http://www.thestar.com.my/news/nation/2016...nd-for-ringgit/

This post has been edited by Hansel: Dec 3 2016, 11:02 AM

Tq bro AVFAN,... always a pleasure to see your postings. I'll comment to some sentences below :-

QUOTE

Other measures to increase the demand for the ringgit include placing a cap on the amount that companies and individuals can invest locally or abroad in foreign currencies.

At the moment, companies and indivi­duals with loans tied to local banks can only invest a certain amount abroad for instance to purchase companies or properties.

Comment : I wonder credit card debts are regarded as loans ties with local banks ? If they are, then we have to pay-up the credit card debts first before doing a TT ??? Doesn't make sense. Maybe can-lar,....

By the way, if this is going to be enforced (don't know how they are going to do this though), then, yes, this step will certainly cut out a lot of potential overseas investors. Everybody has at least a bank loan or a car loan.

For companies with loans, the limit is RM50mil while for individuals, it is RM1mil.

Comments : Only 1Mil for individuals ?? If the Ringgit falls, then that RM1Mil is GOING TO BE BREACHED. Then what happens ?? Must selloff our assets in excess of RM1Mil overseas, instruct our overseas banks to wire-transfer the proceeds back to Maybank and Public Bank in RM ? This is not practical,... how to follow,.. and furthermore, how are they going to oversee this ??? Err,... enforce a ruling telling everybody to declare all their overseas assets ??

However, there are no restrictions for companies and individuals if they want to invest in foreign currency assets in the domestic market.

Comment : Of course there is no cap here, they can anytime force you to convert back into the RM as and when they pleased. Now they are doing it to the exporting companies.

“Companies and individuals tend to buy US dollar bonds or investment instruments sold by local banks by taking borrowings from local banks. Now there will be a cap on this,” said a dealer.

Comment : This is speculative. Maybe, to curb speculative activities, this is right. Otherwise, speculators will get burnt when the timing is wrong,... unless they don't have to pay back, like some 'powerful' individuals in the country - they don't have to pay back if they lose. The majority must pay back.

Effective Monday, local companies and individuals with borrowings can only invest up to RM50mil and RM1mil respectively in foreign currency denominated assets in the domestic market.

Comment : Let's see how they enforce this,....


In summary,..............BNM is closing the doors too !!!!!!!!!!!!!

Hmm,... if we're talking abt future amts coming back, then why did that asst giv mentioned abt the current improvement that can be enjoyed ?

"The amount held by exporters in foreign currencies is estimated to be closer to RM90bil. At current exchange rate of dollar and ringgit, the gradual conversion of the export proceeds could result in Bank Negara’s reserves increasing by more than US$18bil (based on an exchange rate of RM4.44 to the dollar)."

And why is the Asst talking all the time ??? Where is the main man ??? I keep asking this,....

Yeah bro,... agreed with you. I have friends telling me that it's hard for them to TT funds out. This was many years ago.

Doors are closing,....