QUOTE(BWassup @ Oct 14 2022, 05:56 PM)
Sifu, based on your expectations of further Ringgit depreciation, in your opinion, should we then seriously consider parking some funds in USD FD, the rate mentioned before as around 4% for 6 months?
Possibility of capital gain (but also a chance of loss
). And Banks will chiak on the USD buy/sell loading.
Hope this is not considered as going a bit out of topic. Apologies if so
not to go off topic, i'll just say i m of the view u shud do a bit of that as a form of diversification.
at what cost, inconvenience n risk... better discuss in relevant thread.
QUOTE(oldkiasu @ Oct 14 2022, 08:14 PM)
Posted before about my kakis discussion on the question of whether BNM OPR rates and FD promo rates are possibly correlated or not at all since kakis are all seriously in it. To summarize, there is a variety of suggestions of causes, but consensus is that Malaysian OPR is irrelevant to the quantum of the highest promo rates.
Possibly any relevance is more on savings rates or even possibly the bottom FD rates. And even this is not really backed by real data as kakis focus was on comparing actual top rates against Malaysian OPR effects and other considerations of competition and budgetting for bank cashflow funding.
At this point, kakis main focus is that a lot of money is going to divert away from bank support (lousy rates) to take advantage of the raise from 60k to 100k per year voluntary contribution at EPF to replenish EPF funds. Basically those banks that do not raise their promo rates are really going to be hard hit in a funding sense especially when the business loan sector is picking up.
Another idea is that worsening exchange rates are driving out funds to non-Malaysian opportunities although the kakis know that this is somewhat different from the normal or promo FD placers, and maybe they are scratching their heads on how to measure the impact or ascribe what is the impact practically for any real pragmatic help to decision making.
This is all based on the pragmatic questions about what do you really mean by a high promo rate, especially how to place in the situation to be acceptable - seems all kiasu to lose?
the subject is complex, of course.
i don't know precisely how banks-OPR mechanisms work for savings or lending, only that the incremental FD rate tend to correlate closely with change in OPR - everytime.
the global financial situation is volatile... US 10yr past 4.0% again last night.
directionally, it makes sense to expect BNM to do some catching up as there is still room, unlike say turkiye.
somewhere at the back of my mind, 1998... i hv seen people carrying bags of millions of RM onto the plane to place in SG for 16% int.
our banking regulations here are fairly restrictive but still, we cannot escape the incr turmoil that may be unfolding in the next year or 2.
in summary, i rather give up a bit but maintain some flexibility for quick action if necessary.
Sep 28 2022, 05:06 PM
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