Thursday, July 21, 2005
[571] Of Ringgit unpegged!
[571] Of Ringgit unpegged!
I'm going to exchange all the dollar I have left to ringgit right now. From Bank Negara:
And wow, we didn't wait for China.
p/s - I've just found out that China has ditched their fixed regime in favor of flexible exchange rate. This can only one thing - the rumor that the Malaysian government did send a team to China for consultation purposes is true. It must be true since it is almost impossible for both Malaysia and China to simultaneously switch to floating exchange rate.
About less than a year ago, I read somewhere that the Ringgit should be approximately between MYR 3.20 and 3.50 to a dollar. Let's see if people in the economic circle have made the right prediction.
I'm sure that whiny and bitchy US manufacturers are happy with today's development. China right now, however, I think, has a strong incentive to reduce its holding of US T-Bills.
Bank Negara Malaysia announces today that the exchange rate of the ringgit with immediate effect will be allowed to operate in a managed float, with its value being determined by economic fundamentals. Bank Negara Malaysia will monitor the exchange rate against a currency basket to ensure that the exchange rate remains close to its fair value. Promoting stability of the exchange rate continues to be a primary objective of policy.
p/s - I've just found out that China has ditched their fixed regime in favor of flexible exchange rate. This can only one thing - the rumor that the Malaysian government did send a team to China for consultation purposes is true. It must be true since it is almost impossible for both Malaysia and China to simultaneously switch to floating exchange rate.
About less than a year ago, I read somewhere that the Ringgit should be approximately between MYR 3.20 and 3.50 to a dollar. Let's see if people in the economic circle have made the right prediction.
I'm sure that whiny and bitchy US manufacturers are happy with today's development. China right now, however, I think, has a strong incentive to reduce its holding of US T-Bills.
08:12 EST |
(2) Comments
This post has been removed by the author.
By Solbi-wan Kenobi, at 21 July, 2005 08:23
Yup. I found that immediately after reading BBC after posting this entry.
By __earth, at 21 July, 2005 08:33
