Malaysian Economy

[masterof_none]

There's almost absolutely no reason for you to profit from floating ringgit.
Why?. because everyone now is eyeing in China.

The decision to unpeg Ringgit in the light of Chinese renminbi is obvious.
Malaysia unpegged the ringgit 'right after' Chinese decided to unpeg theirs. By shadowing itself (or hiding) behind China's hot new renminbi,
(which took more than a decade to be floated in the market),
Ringgit could prevented itself from floating wildly.

Also, Ringgit now does not floated as it's used to. In fact, more management on the supply side. I can feel that it is something like 'lessen' the magnitude of the peg. In other words, it's actually still a peg 'in a certain range'.


Read these two articles :
http://thestar.com.my/news/story.asp...873&sec=nation

Chinese renminbi :
http://economist.com/agenda/displayS...ory_id=4199196

[Thirdshifter]

Originally Posted by masterof_none

In other words, it's actually still a peg 'in a certain range'.

It is still pegged but not just to the dollar, but to almost all major currencies.

I think that is probably the most simplistic explaination there is.

Bank Negara knows that eventually the dollars is going to bounce back.

The reason behind the "re-peg" is because the increase of the price of oil. Once it goes down so will this "re-peg"

[el_empty]

great news:

http://thestar.com.my/news/story.asp...622&sec=nation

again, since the star's archives sucks, i'm going to c&p this:

Zeti is Central Bank Governor of the Year
News Update by JOHAN FERNANDEZ of The Star

WASHINGTON: Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz has been named Central Bank Governor of the Year by financial magazine Euromoney.

The prestigious Euromoney?s Central Bank Governor of the Year is an award for the world?s best central bank governors.

This was the third award in three years for Malaysia's Bank Negara head, after Emerging Markets magazine named her Best Central Bank Governor in Asia in 2003 and The Bankers, a publication of the Financial Times, gave her Central Banker of the Year Global Award last year.

Dr Zeti, who is here for the International Monetary Fund (IMF) and World Bank annual general meeting, received her latest award from Euromoney chairman and editor-in-chief Padriac Fallon at a ceremony at the Hay Adams Hotel here.

In his address before the presentation, Fallon described Dr Zeti as a "supreme professional" among a new breed of central banker governors.

"Our Central Bank Governor of the Year goes to a woman whose quiet, shy demeanour hides a fierce determination to boost her country?s economy and build it as a hub for finance in the region," he said.

He said that since becoming head of the central bank in 2000 Dr Zeti had overseen radical reform on exchange rate, the capital markets and the banking industry.

Fallon said the performance of ministers and governors was getting better all the time.

"We seem to be in a period for some years now where the economic system seems to be able to suffer shocks without going into total crisis.

"Perhaps, the reason for that is we have better central bankers and finance ministers now than we did before," he said.

Commending Malaysia's former prime minister Tun Dr Mahathir Mohamad for picking Dr Zeti. Fallon added: "The economy she is responsible for grows steadily year on year. "The country now has one of the most developed Islamic finance services in the world, a market that we in Euromoney have given particular attention to."

[gonjeng]

sorry for my level of ignorance (considering that i suxx in economics), but how this is a good news? more like a neutral news to me the only thing i can think of is it may promote other investors to come to mesia and start investing - although i fail to comprehend the relationship between the two. so... can someone explain (in laymen's term, of course)???