I have put money in NZD FD from HLB a year ago at bank sell rate of MYR2.3/NZD ... now the bank buy rate is about 2.5. The interest I was promised was 7.1%. I checked the other day after consideration of the currency exchange, I have gained 12% per annum.

All I have to say is that, you have to buy in at the right time, not simply buy ... for example NZD and AUS now are so high, if you expect it will still grow, then you can go ahead with it, else ... don't buy when it's high.

Furthermore, always have to consider the buy and sell rate in your calculation.

This post has been edited by p4n6: Jun 8 2007, 12:35 AM

Yeah, it's not something where you can just put in and forget about it for two years or whatever. If you know when the exchange rate is low, and when it's high, then you can try it. You can make a whole lot more than FD, but then you can lose a whole lot more too.

This post has been edited by wodenus: Jun 8 2007, 11:15 AM

pls kindly correct me by saying this is a bad investment, which i did not mean it. appologise...what i am trying to express is it might not be as good as what we predict.

Only PBBank impose that rule, for others bank, you don't have to convert back, you can renew or withdraw in foreign currency or convert to other type of currency.

hong leong bank do the same as pb bank by converting back to myr when matured. so, are u missing another bank ? i am 100% sure about this at hong leong bank,cause i tried before...

Which bank do you mean?
As far as i could recall, only HLB and PBB currently have foreign FD deposit.
I was thinking to put 1 month FD to minimize the exchange volatility. Any comment?

Well thing is few people really act as a contrarian when a thing is low sometimes.

Well lets take Ringgit USD for instance. Ringgit was on an all time high a short while ago since the market crash years ago. But how many of us betted US against the ringgit at that time?

Well honestly I wouldn't be so daring to bet the US against the Ringgit myself despite it being very low.

Well another case is, would you short the Shanghai index futures (China) when it is already very high?
I would hesitate too.

Well really not critisizing or anything. Just indicating it is hard to "take a position" when it is high or low sometimes.

But generally people/we do "get out of the position" when things are too high and do "take a position" in stocks when they are low but fundamentals justify buying it.

This post has been edited by Lcsx: Jun 9 2007, 02:28 AM

citibank got foreign fds also, but if not mistaken, can renew upon maturity. Not sure if can redraw in that currency tho...

Most banks especially foreign banks got foreign currency FD now, just some don't actually promote it so unknown to public.

I don't know about HLB also impose such rule, if they really do, better avoid since we don't want it to be converted back, it is mean for long term investment and diversification, also it is against you to make decision when to convert back, we only want to convert back when it is high.

I know Citibank, UOB, S.Chartered, you can auto renew it.

Yup, it is hard to take any position exactly correct but you can roughly know it is at high or low, just like Shaghai stock market, you knew it is too high but you can't predict when it will collapse so at that time, avoid it since soon or later it will go down in near term since it is unsustainable.
Just like GBP, without further increment in interest rate, it is a bit difficult to see is cross the level significantly of 2.00 GBP/USD. Also Ringgit will find difficulty to go beyond 3.35 with USD in near term since ringgit interest rate is going to be lowered also it will significant hurt Malaysia export industry if ringgit appreciate too much

You don't need to buy at lowest point, only avoid the highest or look for a bit low will do. The primary purpose investing in foreign currency FD is not mean to speculate or gain from exchange rate solely, the idea to to diversify your asset/wealth and protect/hedge against your ringgit if anything happened on ringgit front.

As i know for PBB FCFD you do not need to convert back at maturity, it can be auto renew.

Its just that right now PBB offer additional 1% & PBB system will only auto renew FD at normal rate, hence if you under promotional rate for the 1st maturity u will need to go to the counter to do the renewal manually.

For withdraw the foreign currency or convert to other type of currency, this are something like forex trading not a foreign currency deposit. Can u tell me which bank are provide this kind of services?

Presently if u 1 to TT or transfer the foreign currency to local or foreign bank, u must have foreign currency current a/c or use the MYR to convert.
Do the bank accept us using foreign currency to do the TT/Bank Draft?

This post has been edited by Kantao: Jun 24 2007, 01:35 AM

I knew a foregin bank which I familar with, they can do that but not sure on others, mostly foreign banks can if not mistaken, local banks rules on it might be varied.

1. For this PB FC FD, you are practically assured of the rate of return depends on your Currency FD placement. The only risk is the FOREX.

2. Foreign Unit Trust, you are exposed to FOREX and Market Risk.

3. Local FD - assured of the rate of return.

4. KLSE - Market risk.

Which is better? Depends on your own appetite risk.

may i know which foreign bank u familar with it? Citibank, Standard Charterd, HSBC or Dustche Bank?

Have u dealing the foreign transaction which no involve MYR with them b4? like used USD to TT or bank draft to other party in USD.

How they charge u? Only bank service charges(normally is RM25+) or have forex exchange charges inside? 10s.

I had asked the RM (relationship manager) of UOB, Citibank and OCBC, they can do it but charges don't know, haven't made before.
Don't think have forex charges if your FD is in USD and remit or TT as USD, not 100% sure, better ask them.

10s 4 info. wll try to find out.

the issue now is, when your foreign fd matured, can u withdraw the sum of money in the foreign currency that u deposited. u do not need to convert back to myr and convert back to the foreign currency again when the money matured.

the rules of the game is -
1. if u wana deposit into australian dollars, u have to bring a bag of malaysian cash (malaysia currency) to the bank. the bank manager will convert your money into australian dollars. from here, ur interest begin.

2. when ur money matured, for example, after 1 month, if u think u wana reinvest into this kinda fd again, u can auto renew, there is no need to convert the aud to myr and to aud again....

3. the last and big issue here is, when ur money matured, u are not allowed to withdraw the money in australian dollars not, the bank will auto convert the aud into myr depends on the day's conversation rate......

if the bank allow the investor to withdraw the cash in the foreign currency, i will be the 1 to first q up in any bank that offer this scheme....

lastly, bank will not do a business that do not profit them.

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Added on June 26, 2007, 2:25 pmcherroy, which bank do such a good stuff ????? can u pls let me know....i am ready to q now with cash ready.

This post has been edited by a6meister: Jun 26 2007, 02:25 PM

Ask UOB or OCBC about it. I am not banker so whatever my answer can't be the ultimate.
But I do ask them before about it, they said no problem if I withdraw the FD and remit the money to overseas.

This post has been edited by cherroy: Jun 26 2007, 03:10 PM

I just saw a new product on the market. Dual currency FD. Interesting....I wonder whats the actual risk-adjusted return should one anticipate from these products ?

to remit the currency to oversea country ? so, that mena, i will need to open an acount in hsbc, royal bank of scotland or any uk bank if i deposit the fd into gbp ?

honestly, i dont think it make sense.

bro,

this product, minimum investment RM250k la.. check out the fine print