The Malaysian Ringgit (MYR)
Today I read the news on the MYR which someone predicted that, by year 2008, it would strengthen to 3 MYR = 1 USD. Before 1997, to buy 1 USD, you needed 2.50 MYR. During the height of the Asian financial crisis, to buy 1 USD , you needed 4.96 MYR, before it was artificially pegged at 3.80 MYR to 1 USD.
The peg rate stood for sometime until July 2005 when the peg was removed. Now, if you want to buy 1 USD, you have to come out with 3.49.. MYR. By 2008, as someone reckoned, the exchange rate would come down to 3.00 MYR .. which was the rate of exchange in '50s and '60s or even before then.
Now, I don't care 2 hoots about the MYR strengthening against the USD. I am only concerned with the MYR when I visit countries like Thailand, Singapore, Japan, Britain, or Europe .. because the currencies of these countries also strengthen against the USD in varying degrees, which make my MYR no better in value.
The BNM's (Malaysian Central Bank's) IFR now stood at some USD 82/83 billion as at 31st January 2007. It has not increased substantially since last I mentioned it 2 years ago- strange that the high price of oil has not pushed up the Malaysian coffer when Petronas had been producing a million barrels of crude per day and selling them at inflated prices.
The peg rate stood for sometime until July 2005 when the peg was removed. Now, if you want to buy 1 USD, you have to come out with 3.49.. MYR. By 2008, as someone reckoned, the exchange rate would come down to 3.00 MYR .. which was the rate of exchange in '50s and '60s or even before then.
Now, I don't care 2 hoots about the MYR strengthening against the USD. I am only concerned with the MYR when I visit countries like Thailand, Singapore, Japan, Britain, or Europe .. because the currencies of these countries also strengthen against the USD in varying degrees, which make my MYR no better in value.
The BNM's (Malaysian Central Bank's) IFR now stood at some USD 82/83 billion as at 31st January 2007. It has not increased substantially since last I mentioned it 2 years ago- strange that the high price of oil has not pushed up the Malaysian coffer when Petronas had been producing a million barrels of crude per day and selling them at inflated prices.
posted by Richard Sorge @ 4:24 PM
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