China cannot dump USD because they got no where else to park their money.
They also doing QE... that's why the Yuan/Renminbi been going down lately.

Anyway, Malaysia just started to join the races to the bottom for currency.
Welcome to the QE club.

Low interest to pump up the stock market... get ready for bull run soon.

Sometimes, it isn't the ringgit strengthening but USD falling due to rising commodities and continued perceived
low interest by US Fed.

Well, we need to define "holdings" here..a bit more specific because they mean different thing depending
on how people see things.

China has been lightening up their Treasury holdings since last year (down from near 2T level)... BUT at the same time, they're using the money to quietly acquire US-based HARD assets (eg. real estates and companies) in US itself.

China still holds the number one spot of US treasuries despite the low yield as foreign debtor (at around 1.2T~1.3T)
Japan is 2nd (1.1T).

China also using the money to buy gold. Dunno why they hoard so much gold is anyone guess... perhaps they
know something bad is about to happen.

This post has been edited by danmooncake: Jul 15 2016, 01:26 AM

That is huge.. big seller of Ringgit

This is juicy yield.

Agree. Sometimes, the more rules they impose.. the market will get even more jittery because of confusion
and uncertainty.

It will be interested to see how wide the spread can become esp with off-shore/on-shore.
BNM said no new rules have been imposed but if on-shore participants also can become net-seller
in large volume, they and the other banks will be forced to take the other side of the trade.

You know, we've seen all the data sets available for US market and how it correlates to King Dollar performance but yet we do not have much data that basically we can say Malaysia Ringgit will be supported in any shape or form other than Oil price movement.

So, I wonder if anyone knows what Malaysia really has (don't count Oil) that foreigners desperately need that will entice them to BUY the Ringgit or help to strengthen the Ringgit in future?

This post has been edited by danmooncake: Nov 30 2016, 12:00 PM

Wow.. I am surprise that you're able to do this effectively.

Earning Ringgit and converting them to foreign currencies to buy overseas assets is almost like
swimming against the upstream current.

In Ringgit terms, it has lost 30% in value for the past 3-4 years against the USD.
Hopefully, you were able to earn an incremental rate higher than 30% to offset this difference and
your foreign assets that you've already bought has appreciated in value too.

I think better wait for oil to get back above $55~$60.

Yes, I noticed that too. It's been flat since late last week.
Invisible hands working to support and not letting it fly either.

Maybank OTC rates for Buy/Sell spread quite high.
Must be making a lot of money now.

I don't think there is anything to worry about esp EU country like Italy.
The trades there over there is so little compare to China, US, Singapore and other neighboring countries.

But, BNM action on currency trading by foreign banks are worrying.
If they all start to exit, then no wants want to do business in Malaysia anymore.
The declining Ringgit could get trap in death spiral.