Yes, I personally believe everyone should understand and note that currency movements, especially for emerging markets are due to external issues and has nothing to do with sudden deterioration of fundamentals. Anyway, it can’t happen overnight and certainly not when the GDP of Malaysia for Q3 is still positive. I also DISLIKE anyone manipulating currencies so that they can earn profits which is definitely at the expense of most Malaysians! Below is the statement from Bank Negara Malaysia. Full and original article in Starbiz here.
Below is the statement by the Financial Markets Committee on Financial Market Stabilisation Measures:
With the surge in volatility, the ringgit foreign exchange market has become prone to extreme movements.
“Recent offshore market activities have brought on significant volatility and undue adverse influence on ringgit prices. “As the ringgit is a non-internationalised currency, prices should be fully determined by onshore financial market transactions that are be driven only by the fundamentals and genuine trade and investment activities in Malaysia”, says Assistant Governor Adnan Zaylani.
Bank Negara Malaysia is taking measures to ensure the markets do not price ringgit excessively and out of sync, while providing the necessary liquidity in the foreign exchange market.
The Central Bank, through the Financial Markets Committee (FMC), is also in close engagement with all market participants to update and monitor the market situation.
The FMC thus would like to reiterate to market participants that Malaysian financial markets are open to all market participants to facilitate their financial market transactions and capital flows arising from the real economic sectors, trade and investment activities.
This was what the Monetary Authority of Singapore said, in a statement. “MAS stands ready to curb excessive volatility in the trade-weighted Singapore dollar if needed.” Full article here.
Happy reading, else it’s time to hedge everything you have everywhere else and not the countries in the image. Yes, it can’t be true that every country in the image has also suddenly all lost their fundamentals simply because of one ‘misunderstood man’? Yes, I am talking about the new President for the largest economy in the world. He has affected all the emewrging markets’ currencies. Sigh…. As for me, I can only continue to write and share and perhaps contribute a bit more to the economy by buying a few more pairs of shoes. 🙂
written on 11 Nov 2016
Next suggested article: Summary of the potential of twin deficits for Malaysia