Monday, August 17, 2015


The decline in RINGGIT is in tandem with the rest of the global currencies. That is a FACT and one should not be blind. There should not be any concern about this decline. On the contrary one should be extremely concern with the re-introduction of PEG ala DrM style.

Why? It will make Malaysia export totally EXPENSIVE and drain BNM reserves. The most logical decision is to let Ringgit slide in accordance with the rest. It is the onus and responsibility of the people to hedge accordingly.

No country will be able to sustain the PEG, even SWISS knew it. Who gain the most if re-peg is introduced? People who need foreign currencies. It is better for BNM to focus on ensuring there are sufficient foreign currencies when they are needed to settle payments instead of throwing good apples after bad.

The best part is I am sure and probably BNM has idea how much is needed if funds exit and balance of payments including the Foreign workers repatriating funds. Well, don't think that having lots of foreign workers is a bonus for cheap labor. The country reserves will suffer.

There has to be a total policy to address all this issues.

While Opposition Parties are busy with this nonsense past issues, they are not in a position to work and focus on current and future issues especially the globalization. Not helping is the myopic minds of Malaysian Politicians.  

Any outcome of 1mdb is not going to make RINGGIT appreciate vs NON-RINGGIT including USD. We all need to accept and understand that! Are we forward or backward looking? Dam the politicians. 

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