Interesting bond sale appears in BNM's website.

It says here that the opening date is on 1st August and issue date is 4th August.

Guess how much is the bond sale? RM2.5 billion..

Very close to 1MDB payment to IPIC worth RM2.8 billion and the issue date falls within the 5 day period extension.

Coincidence?

https://fast.bnm.gov.my/fastweb/public/MainPage.do

Tender Code: 201700001701
Tender Description: GII MURABAHAH 5/2017 04.08.2037
Stock Code: GX170005
Stock Description: GII MURABAHAH 5/2017 4.755% 04.08.2037
Issue Date: 04/08/2017
Maturity Date: 04/08/2037
Issue Amount (mil): 2,500.00
Maximum Allotment Limit (mil): 750.00
Profit Rate(%): 4.755

General Result
Amount Accepted / Offered (mil): 2,500.00
Amount Applied / Bidded (mil): 4,460.00
Amount Rejected (mil): 1,960.00
Total Number of Bids: 170
Cut Off (%): 50.00

Bro dont get me wrong. I agree with what you wanted to say. You have your valid reasons for your argument. Like I have mentioned before, do whatever that suits you best. You should know what is best for yourself at this moment. You will learn from experience and will have different views on this matter later in life. Trust me.

It is undeniable a currency is affected by political situation, just we don't want the topic derail into political talk, as it is a finance section.

The focal point on this topic is about RM/USD issue aka more about financial issue, not in depth of which politic party, nor politic leader.

There is no problem to state a currency level is having a discount or premium due to political issue, election outcome etc.
But in finance section, further in depth is discouraged to prevent the topic being derailed.

As stated before, if wish to talk about in depth and political issues, one can always open a topic in RWI section.

RM/USD has many front to talk about as well.
International reserves, trade surplus, current account, economy, GDP etc besides political front.

There is no strict line in between, it is just a preventive advice so the topic is not being derailed, as there were more posts on political discussion instead of  solely RM/USD discussion lately.

Hard to distinguish what is politically-related and what is not when discussing on currency issues of this kind,.. and then how deep should we go ??

Almost every factor affecting this discussion is politically-related,.... how to move sideways ??

same old story la... borrow, borrow, borrow.
$ index at 93, RM 4.288.

we just watch what happens when the $ recovers and if RM will follow.

if it doesn't follow, u know the result!
meanwhile, prices of everything rising non-stop.

was at a private hospital yesterday... some doctors now charging RM250 for consultation (talking), and other RM350 for procedural fees (examining you).

add medication and gst, u pay RM1k for single visit.

will have to Q up at gomen hospital next time.

Anyone saw this?

What will it do to the Ringgit?

http://www.thestar.com.my/business/busines...its-outPETALING JAYA: Bank Negara has hit out at the Singapore Stock Exchange (SGX) and the Intercontinental Exchange (ICE) in Singapore after the bourses introduced the trading of ringgit futures on their exchanges that went against the country’s policies.
Saying the introduction of the derivative contracts was inconsistent with Malaysia’s foreign exchange administration (FEA) policy and rules, the central bank reminded all market participants to observe existing FEA rules.
“Contravention of the FEA is an offence under the Financial Services Act 2013 and Islamic Financial Services Act 2013,” it said in a statement yesterday.
“Appropriate action under the law will be taken against any person that does not comply with prevailing rules and regulations.
“Foreign participants should access the onshore ringgit foreign-exchange market to meet their financial needs, either directly with onshore licenced financial institutions or their appointed overseas office.”
The ringgit is a non-internationalised currency, and thus, Bank Negara said the offshore trading of the ringgit in any form, whether as a non-deliverable forward (NDF) traded out of offshore financial centres or as a futures, options and other derivative contracts on exchanges outside of Malaysia, is against Malaysia’s policy.
Bank Negara has taken great effort to restrict the trading of the ringgit offshore. It decided to act in December last year against the offshore NDF market after seeing how the onshore rates were taking their cue from abroad on what the ringgit’s value against the US dollar should be.
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Read more at http://www.thestar.com.my/business/busines...at-sgx-and-ice/

Just saw it this morning? Can BNM really dictate what SGX can do? I meant is out of BNM jurisdiction right?

As far as I knew, BNM could only impose restriction on local banks or (banks within their control) not to involve in those derivatives, similar to NDF.

Actually, it is not too much different with NDF situation.
It depends on the derivatives liquidity.

They are already doing it. All banks operating in Malaysia needs to report on any inflow and outflow of funds from your accounts. All bank clients will need to state their reasons or prove the source of the funds for inflow or outflow of money overseas.

It depends on the derivatives liquidity.
If Soros wants to short the RM derivatives, while market has no liquidity aka not many buyer, then it is hard to short as well.
Derivatives is a zero sum game.

I would say most of  the illegal outflow of RM overseas would not be to Singapore as Singapore is very strict with its capital countrls. . Better check with the underground money changers and where most of these funds go to. 
Dont quote me, but this is what I heard from the big timers.

Wrong. It's those bangla, indon, nepal people who's bringing out the money. RM30b/year + additional from those illegal workers.
https://asia.nikkei.com/Politics-Economy/Po...arks-a-backlash

RM is already not international tradable currency since 1998, so I do not see why one wants to remit big amount RM to overseas bank nor overseas banks want to receive in RM as well (set aside people bring across the border in the form of cash, which is another story)

There is no restriction to send money to overseas, provided one has exchanged RM into USD/SGD/whatever first before remitting.
In this way, BNM has control over RM matter.

It is about RM that BNM wants to have full control on it.
They do not want to see an overseas derivatives market dictate the RM exchange rate.

So far, there is no capital control, everyone can invest in SGX, remit money to overseas for investment easily etc.

He may not (or may, I won't comment too much on this) the culprit, as the crisis started due to structure issue of using short term debt to fund long term funding needs across the Asian and with insufficient foreign currency reserves that provide an void that can be exploited by speculative activities,
but undeniable, hedge fund speculative activity did add fuel into fire, which created more spiral down effect.

But at the sametimes, I do agree on BNM pov, the RM derivatives is providing an avenue for speculators to pound on.

As long as the gomen is promoting mgs to foreigners, there is a demand for offshore trading.

as long as the country is a trading nation, bnm could only control myr forex rate to certain degree only.

with loan to deposit ratio is some local banks exceeded 99.0%, tools available to bnm to manage liquidity and forex is rather limited. hence, expect bnm to be harsh and drastic.

Incorrect.

When foreigner want to buy MGS, they bring in USD and exchange into RM with BNM.
There is needless to have an offshore trading, since a real RM is only available onshore.
You need real RM to buy MGS.

Offshore trading of NDF has not real physical RM being exchanged .

This has nothing to do with local bank LDR situation.

If market is not distorted, value of goods include myr should be about the same everywhere.

Further, if myr value is not controlled or guide, bnm should not worry about offshore market. One issue with bnm is its relatively low foreign reserve limit it's ability to intervene. Hence resorted to threat to financial institutions.

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