Rm3.70 vs USD?

http://www.themalaymailonline.com/malaysia/article/nazir-ringgit-should-be-trading-at-about-3.70-to-us-dollar

Read the article above what Nazir thinks MYR is worth. Nazir has been pretty sensible sort of guy. In my opinion , he should confine his specialty to managing a bank and fix some of the acquisitions CIMB done and yet to turn into profits. I wonder if these acquisitions are financed in USD or MYR? If they are hedged or otherwise? If not, .... WHY NOT!!! IF one cannot understand currency market and get it right, it is best to keep quiet and not spew rubbish.

WE ARE IN A SITUATION OF GLOBAL USD versus NON-USD.

IF you borrow USD LOAN including BONDS, YOU ARE SHORTING USD! DO YOU UNDERSTAND THAT!

One borrow in USD could be due to

1. Low interest rate. What about potential risk of rising interest rate?

2. USD will not rise. What about risk of rising?

3. Both the above

How and what have you done to mitigate the above risks????? I bet NOTHING. CONGRATULATION. 

It is dam blardy idiot for bankers exposing banks to currency risks. IF they hedge than they are prudent.

You can google and check the list of acquisitions by CIMB and AirAsia over the last 5 years. Than you decide if investing in this companies is what you should do.

Currency is somethings that is "valued" according to what it is perceived to be worth and NOT what you think it is worth. Well with MYR3.70 rate do you think Malaysia can be competitive to export while the competitive nations are lower valued?

Bankers should confine their task to managing a financial institution properly and prudently. Stop getting into some areas which one has NO dam clue it is about.

I am sure more and more CEOs will come and start the BS on MYR value sooner or later to try cover company bad results due to poor hedging strategy.

I have advised corporations in the past of risk management and hedging (commodities and currencies). My conclusion is I have not come across companies who are serious on this matter or had no dam blardy clue what this is all about. I have yet to be proven wrong.

This companies I have provided my services are BILLION dollar company listed on exchanges.

Now you know why the blardy heck I am not buying stocks!