Stemming the Tide: Six Things China Can Do Next to Curb Outflows

1) Limit Overseas Spending
2) Pressure Exporters
3) Tax Currency Transactions
4) Clamp Down on Bitcoin
5) Control Banks
6) Encourage Inflows

https://www.bloomberg.com/news/articles/201...ght-bitcoin-art

Bro,.. then it looks like the RM has found a new normal level with the SGD and the AUD,... the weakest ever.

Frankly, bro,... you should now buy more of the USDs to pull-down yr average exchange rate.

Bank Negara refines export proceeds conversion rules to facilitate businesses
http://www.themalaymailonline.com/money/ar...litate-business

Malaysia's Ringgit Crackdown Spooks Overseas Investors
https://www.bloomberg.com/news/articles/201...eters-investors

IPIC-1MDB talks on US$6.5 billion payment fail
Reuters | February 16, 2017
Abu Dhabi investment firm's demand for US$6.5 billion from Malaysian state-owned investment firm will now be up for arbitration in UK.
ipic-1mdb-3

ABU DHABI/KUALA LUMPUR: Private talks in which Abu Dhabi state fund International Petroleum Investment Co (IPIC) is seeking US$6.5 billion (RM29 billion) from Malaysia’s 1MDB fund have reached deadlock, sources familiar with the negotiations told Reuters.
IPIC took its case to the London Court of International Arbitration (LCIA) last June but the two state-owned investment companies have been trying to thrash out a private settlement since then, the sources said.
They have failed to bridge their differences, however, and may now leave the matter to the LCIA, the sources, who declined to be named, told Reuters.
The court would probably take another 15 to 18 months to reach a verdict, one source said, and the delay in resolving the dispute could prove embarrassing for both sides.
Malaysia’s government wants to distance itself from the affair, which is the focus of money-laundering probes around the world, before elections that will be called as soon as this year.
“Private settlement has hit a wall – they are disagreeing on one or two big issues. It looks like the court will have to decide,” said a source close to the talks, although he added that an out-of-court settlement was still possible.
An Abu Dhabi-based source said: “The best solution would be an out-of-court settlement, but that doesn’t seem likely.”
In December, IPIC proposed that 1MDB pay it an initial US$1.2 billion to help reach a final settlement but the Malaysian side rejected this, the sources said.
Spokesmen for IPIC and 1MDB declined to comment.
The case is also potentially embarrassing for Abu Dhabi, which is traditionally secretive about its investments.
In July last year, the US Justice Department filed lawsuits seeking to seize US$1 billion in assets bought with money stolen from 1MDB, including luxury real estate in New York, Beverly Hills and London, paintings and a private jet.
Former IPIC group executives Khadem al-Qubaisi and Mohammed Ahmed Badawy al-Husseiny were named in the US lawsuits.
Al-Qubaisi and al-Husseiny could not be reached for comment. Abu Dhabi police and government officials declined to comment.
http://www.freemalaysiatoday.com/category/...n-payment-fail/

Yes. 

No signs of it strengtening either. Before CNY, it was going up and down. It looks like downward only now.

AUD NDF just hit 10 yr high @ 3.44660 last night 
USD is back-tracking a bit from 4.466 @ Wed to 4.444 this morning   
SGD NDF just hit 10 yr high @ 3.16561 this morning   
GBP continued its Feb rebound to 5.588 this morning 

or those buying imported goods. For e.g. I saw this dell Dell S2316H 23" Monitor used to be RRP @ 600+, now 860!!!! 

Not confident in the MYR in the next 10 years unless a lot of MNCs relocate from Singapore to Malaysia.

Btw, its time to target SGD$1 to Rm3.20.

At the rate the Rm is falling, i would predict 3.5 at least. Go go Sgd!

Malaysia's currency curbs boomerang on bond markets

Investors' immediate concern is that the foreign money in 10.5 billion ringgit of bonds maturing in mid-March will flee. They already suspect that much of the overseas cash in an 8.75 billion ringgit chunk that matured in mid-February has left the country.
http://www.reuters.com/article/us-malaysia...s-idUSKBN1660WT

Onshore forex mart going through period of adjustments
Read more: https://www.malaysiakini.com/news/373943#ixzz4Zu0DMJYD

Means RM gonna drop further?

People still tell me there's nothing to worry about... that since we don't import anything from Singapore it's okay.
But it's not like we're doing very well with USD either... so double whammy.

People on Reddit told not to worry about it. They say Malaysian food is still better, will have good business. 
Yeah exactly... a weak currency is good for exports in general, but also sucks for travelling.
Also I'm pretty sure JB imports treated water from Singapore.

Maybe bouts of USD weakness + FX reserves + maturing bonds and potential outflows? imho 

AVFAN why isn't Saudi's investment helping to boost the RM abit?

The Arabs are not as 'extravagant' as they used to be, not with the current dip in barrel prices. The Chinese are very cunning people. They wont simply pour their money into you without getting 'more' from you. And like mentioned, even if the funds do come in, how sure are you those monies will be pumped into the economy or rather to 'somewhere else'?  Just take all these news with a pinch of salt.

That's what i interpreted as short term (Feb & Mar bonds redemption and potential outflow?)  vs long term (FDI) impact 

there will always be "major" reversal in term of time-frame 
it cannot be 1 way traffic 
however the size of reversal before resumption of LT trend need to be revisited then 

Outlook bleak for ringgit, say analysts
FMT Reporters | March 1, 2017
Economist: With Bank Negara's weak foreign currency reserves, ringgit's depreciation could see it drop to as low as RM3.30 against SG dollar.
http://www.freemalaysiatoday.com/category/...t-say-analysts/