[Official Thread] Ringgit Exchange Rate - Part 2

tamago_

tamago_

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Money changers can operate like sort of a cartel and reflect delayed prices (of devaluation) if they foresee uncertainty in exchange rate movements. The extended market closure helped to justify this action. They would also love to buy at around 299 and sell at 291.5, cos who doesn’t?
 
windwaver

windwaver

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Aaagogo said:
i predict by the end of the month will drop to 3.1xx

the initial market reaction is a good sign

Ringgit falls to 4-month low after Mahathir's election win
Click to expand...

Oil prices are expected to be stable but the move to remove GST and re-introduce petrol subsidy is going to cost Malaysia; Dr. Mahathir also mentioned that he isn't going to revalue RM too much.

For the short term, the strength of RM is going to be weak but Dr. Mahathir may be reducing debt by scrapping projects that are not beneficial to Malaysia.

In the longer term, RM will stabilize depending on how fast everything is balanced out.
 
Aaagogo

Aaagogo

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bro... oil prices will be rising for everyone else except China... probably the only saving grace for malaysia oil.

Oil prices hit three-and-a-half-year high after US exits from Iran deal

usa withdrew from iran nuclear deal = usa sanctions on iran = iran no sell oil
iran no sell oil = overall production decrease = increase in oil price = saudi arabia and russia laughing to the bank

should USA force sanctions on everyone else, then iran can only sell oil to china and china can depress iran price since iran have no choice cause no one buy from them.

scrapping projects that are "not beneficial to malaysia" = no chinese money incoming = less money to repay debts.

it won't be balanced out anytime soon in the near future. this initial transition is rocky, on top of that, mahathir still has to hand over power to anwar which will be another transition.

back to back transitions creates plenty of uncertainty.

windwaver said:
Oil prices are expected to be stable but the move to remove GST and re-introduce petrol subsidy is going to cost Malaysia; Dr. Mahathir also mentioned that he isn't going to revalue RM too much.

For the short term, the strength of RM is going to be weak but Dr. Mahathir may be reducing debt by scrapping projects that are not beneficial to Malaysia.

In the longer term, RM will stabilize depending on how fast everything is balanced out.
Click to expand...
 
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K

kitkat2

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many people don't realize that for the past few years, ringgit has been moving in tandem to oil prices. politics, economy, chinese money, corruption, debts, etc have little or no impact to the value of ringgit.

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