[Official Thread] Ringgit Exchange Rate - Part 2

[hwbest]

2.94 now??

1 : 3.01 now online

 

[evolute8]

2.93 now.............

 

[kitkat2]

if mahathir peg it to an artificially high rate like what he did before, then brace for 2.50

start buying as much as you can now? good luck!

 

[tamago_]

to peg also means he needs to defend it. it starts by him using his foreign reserves to buy back ringgit to secure the peg, or he could raise interest rates overnight (along with its side effects).

 

[luei74]

Ringgit is strengthen now...

 

[hwbest]

mahathir already said b4 he won’t peg ringgit again

if mahathir peg it to an artificially high rate like what he did before, then brace for 2.50

start buying as much as you can now? good luck!

 

[kitkat2]

to peg also means he needs to defend it. it starts by him using his foreign reserves to buy back ringgit to secure the peg, or he could raise interest rates overnight (along with its side effects).

currency control.

 

[beanstalk6]

These are exchange rates reported by banks. The average money-changer may be withholding transaction.

 

[tamago_]

currency control.

currency control works with a peg or official rate, and still require market operations. by limiting the rate of flow of currency, i only limit the amount of foreign reserves i need to spend per unit of time to achieve the desired peg or official rate. to set it to 2.50 overnight and restrict currency movement means I need to mop up a lot of money overnight too. there is no reason to do that when there’s no currency crisis. at worst, the Currency Board has to commit to exchanging US$1 with you for every RM2.5 presented to maintain this peg. would droves of people do just that, believing that it will not be able to maintain the peg and devalue it later? is it prepared to do so?

 

[kitkat2]

at worst, the Currency Board has to commit to exchanging US$1 with you for every RM2.5 presented to maintain this peg. would droves of people do just that, believing that it will not be able to maintain the peg and devalue it later? is it prepared to do so?

this is not currency control. why would they commit to exchange at that rate unconditionally?

outflow is tightly regulated and subject to their approval. inflow is of course warmly welcomed.

china and vietnam have been doing this all along and they are not in monetary crisis.

 

[killless]

How's the exchange rate now?

 

[tamago_]

this is not currency control. why would they commit to exchange at that rate unconditionally?

outflow is tightly regulated and subject to their approval. inflow is of course warmly welcomed.

china and vietnam have been doing this all along and they are not in monetary crisis.

that’s pegging for you. 2.5. but if you think Mahathir should control capital flows without a exchange rate goal, then think about how it affects the morale of investors.

china can do it because they are not afraid of investors fleeing and they are a major economy that can flex its muscles. vietnam has had to contend with a black market when they did that in the past, and they did it with the mindset of trapping foreign investors like as though they are enemies.

 

[kitkat2]

that’s pegging for you. 2.5. but if you think Mahathir should control capital flows without a exchange rate goal, then think about how it affects the morale of investors.

fyi, pegging by employing regulations is currency control.

hkd is pegged too. but hk monetary authority has deep pockets and uses market forces and interest rates to peg hkd.

 

[tamago_]

fyi, pegging by employing regulations is currency control.

hkd is pegged too. but hk monetary authority has deep pockets and uses market forces and interest rates to peg hkd.

lol thanks for the info. you mean open market operations?

 

[Aquarius81]

start buying as much as you can now? good luck!

Don't anyhow buy. Wait later come back to this thread cry how ?

 

[hwbest]

singapore dollar hit new lows vs ringgit

 

[jumpmanz]

only 291.5 in jb this morning. pls change in sg better

Sent from Samsung CURVED UHD S8 using GAGT

 

[x3dnd3x]

What do you all think. Should we change now or wait? I June got staycation. Intending around SGD1k.

 

[jumpmanz]

295.2 at tanjong pagar plaza

Sent from Samsung CURVED UHD S8 using GAGT

 

[kitkat2]

Don't anyhow buy. Wait later come back to this thread cry how ?

well, just look at the trend

the bigger news is trump is pulling out of the iran deal. oil prices is heading to $80, $100.

it's your money. you decide