the negativity of the world can't put you down unless you allow it to get inside you

has anyone here actually uplift/hedge ringgit for other asset/commodity class to protect from net worth erosion from the trend? by that i mean actual action and not 'nato'.

do take note that in the past few days, the $ has been fairly stable after a runnup.

the week long charts for USD/SGD, USD/baht, USD/peso... also pretty tight.

it may also be u have become so used to RM falling and falling that a few days flat looks strange!

this thread v1 goes back to jan 2015, almost 2 years ago.

i do not know who took action during these 2 years but i know some are definitely not NATO.

Pegging ringgit in knee-jerk reaction to dollar's strength not advisable: Analyst
http://www.nst.com.my/news/2016/11/192860/...visable-analyst

everybody with money has been doing that...including all the politicians....

i have hedged currency since 2001....

4.5 is they psychological barrier to break that's why BNM maintains it at 4.45?

I presume Yes

the dollar index hit a high of 102.12 on 24 nov.

it has since cooled to 101.46, i.e. about 0.5% lower, quite stable now.

we'll see how it goes next few days.

plus tmrw night, we'll know what opec will do or not do.

major oil price changes will move the $ and hence RM big time.

that might also show if BNM is intervening and/or will continue to do so.

stay tuned!

http://www.investing.com/quotes/us-dollar-index

Saudi Arab and Russia pulled away from the meeting and the talks failed right before it even started

Tis is part of their tricks to influence the pricing
Having said tat, both may deliver last min surprise

care to share which are the low transaction hedging instruments you most preferred with some insights?

wow so long u have been doing this..

most only started few year back.. small time only

No, not like that.

Saudi does not want to attend the non-opec meeting, meet them only after opec has a deal themselves.

Non opec Russia says ok with freeze, not cut.

Opec Iran is here and there, iraq says ok with cut.

Its all in a limbo, fragile.

As the news comes out gradually, oil price reacts, now falling as it is not good at this time.

Goldman gives it 30% chance for some deal.

Still 24 hrs to go, we will see, may be a surprise last minute.

this is long term hedging NOT currency trading...ie hedging for future use....specifically for children's education...

at that time, there is no local FC accounts, but it is still relatively easy to open accounts overseas...i opened accounts in the usual suspect countries oz, nz when visiting, and have a uk account from the time i was working there....and manage them online remotely...

the cheapest way to transfer is by FC bank drafts....just change at the banks and then post them to the banks overseas to bank in...

if you look at currency charts, there were long periods when aud was below 2, and nzd 1.6....and pounds below 5....whenever i felt it's worth it, and have spare money, just convert, buy a draft and send it over....

in later years, i use dci to convert.....

as late as last 2 years, i had need for a substantial sum of aud, and dci most of it, at still good (compared to now) rates of below 3....

of course i over hedged, so after use for education, etc i still have deposits in these countries, which now becomes valuable...lol

in addition, i have bonds in usd, bought when the usd was about 3.0 to 3.2....

Just watched a few minutes of cnbc live from vienna.

Then commentator said tmrw opec ministers meeting may be very short, i.e. no deal or 10 hrs, make a deal.

So, we wait...

Whichever outcome... deal, oil price up, our petrol price up. No deal, rm falls, petrol price also up. Enjoy!!

u really did good plan

As for myself,.. I started around 2004, with Oz and Sgp. Yes, currency exchange was really favourable then,.. made a lot from the exchange rate if we are to convert back to RM today. Back then, the interest rates for Oz and NZ were really fantastic, I recalled,... can get up to 10%+ in NZ...

NO more today ! Today, if wishes to earn in the AUD, must go after dividend shares and REITs.

The SGD has lower interest rates, but the REIT mkt was building up then, and of course, not to mention,... the exchange rate has been strongly in our favour too today. My SGD investments in Sgp are still continuing today.

I have since expanded to North America too.

The foreign currencies outside are self-sustaining, ie they 'regenerate themselves' !

For myself, I don't really think too much abt the gains I will make if I am to exchange the funds back to the MYR. I have no interest to exchange the funds back to the MYR. What I needed to do is to be able to make enough in my investment overseas to beat the overseas inflation, and to buy houses and motor vehicles there, hence, to be able to live there.

No point changing back the money to MYR.

A curious newbie here, how do you manage the taxation part of this diversification strategy, i.e. are you required to pay any taxes in the foreign countries where you're vested ?

Also, could you please elaborate on the "self-sustaining" part about foreign currencies ?

yes, i will also not be converting them back, so the gains are paper gains....but it's nice to know you are spending "cheaper" money when holidaying there....

the yields in oz and nz was good, but spore is a low yield environment, so did not open an account there till 09 via maybank msia...the bulk of the sgd was at 2.4, during a dip just after the 2013 ge13.....cheap holiday money again....lol

This is a very good question, langtrasse,....

As an international private investor, on top of knowing the instruments well, the investor must also understand and be able to abide by the taxation rules of the country that he/she invests in. Otherwise, the investors may run into trouble with the tax authorities of that country, or at the other end of the line, pays more tax than is necessary, hence reducing his gains.

Yes, I do know about taxation rules, eg double taxation treaties, 183-days, etc,...

Self-sustaining means I do not need to convert my RMs into the currency of a country anymore in order to acquire the instruments there, for the income that I make from the instruments that I am holding there is sufficient to continue my investment cycles. Of curse, if I wish to port more of my money out, I can, provided the gov't does not stop money transfers.

Hoped the above is helpful.