Why reply to own post
Should be AVFAN

Sorry forummers,... should be for bbgoat : perhaps you should consider converting more now to pulldown yr average exchange rate.

Corrected,... tks, bro,...

If i hv more rm to buy, yes.

Now, more like i need rm to spend.

My need is more seasonal basis. Twice a year for the fees. If buy now, then have problem to keep also. Do not want to maintain a DCA with minimum deposit requirement.

Have you consider getting a forward contract to hedge your position? Not fun la, depend on pure luck at the point you need the USD

purely coming from risk management perspective, sure you may enter into a forward that is higher than actual rate, but it probably won't be at the highest point

Have considered doing DCI with incentive of FD offer. But never get to do it. Got my luck last year Aug at 4.04, but Jan 4.52. RM12.5k difference in less than 6 mths !

But DCI is more suitable for people with flexibility in timing/no urgent need of the currency but wouldn't mind holding the currency
your RM would most likely push for DCI but forward contract is the more effective tool for confirmed amount and timing of forex need. That's the popular instrument that corporates use to hedge their FX risk also. Obviously the amount is significant enough for you to consider hedging

Bank has this forward contract for foreign currency ? What is the minimum amt for this ?

RM from few banks have been asking me to do DCI.

Just worked out your base and realise it's sub rm200k; may not be worthwhile paying for forward contract. but can always ask the banks. It's a OTC product, so banks are the ones offering such product
My knowledge about forward contract is rather academic, so dont quote me on it

As for DCI, I guess you can consider too, the spread would be smaller than spot most of the time. But you may end up with the foreign currency before you actually need them or doesn't strike even at the date you need them

Not sure why you say DCA has a minimum deposit amount. I have FCA account with UOB when I opened the current account, there's no minimum holding requirement wor. In fact, I've never put a single cent in any of the FCA account yet

True... but then the question arises. Just converting wont help much. We need a plan on what to do with the converted currencies.... ie Investments, FDs etc.

I have been thinking of DCA. Looks like there is another FCA account. So FCA no need minimum holding ? Something new for me.

Citibank and other banks that I asked say need minimum deposit in DCA if not monthly charges will be imposed.

So FCA is something that I should ask ?

maybank fca no minimum amount or charge....

I may have mixed up between DCA and FCA !

Anyway Citibank's FCA for USD acct need to maintain minimum USD 3k. If not there is a minimum charge of USD 80 per month. That is what my Citigold RM told me.

DCI is the structured investment. Probably best to get banker to explain to you the details, though some of the bankers don't seem to know the product well enough also. You should at least get information on when would it strike, what are your options when it strikes, what is the factors that determine the spread, etc. And perhaps compare rates that different banks offer to get the best deal

FCA is just a basic deposit account for foreign currency, I think minimal or no interest. FD rate offered for most foreign currency is miserable.

Not exactly sure what is DCA. But minimum holding of USD3k is painful considering there's minimal/no interest, not to mention the FX risk.

Ya, I think I have basic knowledge on the strike price, spread, fixing date, strike date etc. Just have not gone into it. Have talked to few banks RM on it before.

Mixed up the DCI with foreign currency acct in earlier discussion. Also I equate DCI (dual currency investment) to DCA (dual currency account).

Citibank's FCA has charges like I mentioned few posts earlier.

Maybe I should look for FCA in USD and S$ in other banks.

Thanks for your explanation !

This post has been edited by bbgoat: Jan 25 2017, 08:59 AM

http://www.thestar.com.my/news/nation/2017...worth-rm476mil/

Another arrest by the MACC,... Mia is cleaning-up. MYR may appreciate soon ??

No foreign currencies have been found in the above suspects' homes yet,.. or perhaps the press withheld this finding ?

Ringgit 'very cheap currency' on confidence issue - Eastspring
http://www.theedgemarkets.com/my/article/r...ssue-eastspring

even got songs made for ringgit...

With dow breached 20k, could expect movement on rm.