Next year: RM7 = USD1

Ringgit plunges in offshore markets; BNM locks spot in

Offshore and onshore disconnect is mimicking what the Yuan did early this year.

an order was indeed send out by BNM to banks. my banker friend told me. so did we misun or are they hiding stuff again?

BNM deny that they issued any orders but any idiot will realize that when 4 of the most popular money  exchangers in kuching are closed today

money exchange at kl
buy 4.250 sell 4.400

this big spread capital control is not going to end well.

buy $, pay with a lot more RM.

sell $, get much less RM.

this kind of situation usually spark more fears, real or unreal.

when control lifted, more capital will fly, might move to 5.0 for a while.

notice:

.. mgs yield popped, 3 days: 3.67->3.78->3.94.

.. xe.com - flatliner at 4.38885.

i read that as the world is waiting for BNM to lift control.

then, rate should go >4.4; borrowing cost to spike higher.

if bnm does nothing and keep control... hmm... that's a new one, duuno!

maybe like u said, nobody will buy mgs anymore.

that, for sure.

medical insurance will face double whammy:

.. hefty premium increase for same RM benefits.

.. lower value benefits as hospitals raise prices + GST.
as more people turn to gomen hospitals already faced with budget cuts and increasing foreign workers, it's going to get chaotic.

So,... gents,.. what will happen tomorrow when the mkt opens ?

they issued a statement yesterday. but no confirmation all is back to normal yet.
http://www.bnm.gov.my/index.php?ch=en_pres...ac=4295&lang=en

looking at rupiah and won now, rm has stabilized at 4.32.

if all good, think it will sit around 4.30-4.35 until next fed and trump moves.

local banks, local analysts, local media usually very upbeat about RM.

if this one puts it like that, hmm....