Thursday 24 November 2016

Ringgit Malaysia. Currency Speculators. Club Rocker

Is the 2011 hit for Romanian diva Inna, featuring American rapper Flo Rida.

The stand out house themed music is taken from Inna's top selling album, entitled I'm the Club Rocker.

Like wise currency speculators might have their eyes wide open, with the latest IMF report that suggest that the Ringgit is prone to an attack.

Bloomberg has the story, but before you read it, hold on to your horses because PM Najib, has one card to play, to prove who indeed is the real bad ass "Club Rocker".

That card is the tie up with China which allows the both the countries central banks to help each other in the event of an attack by providing liquidity in local currencies.

This tie up has already, helped boost Malaysia's foreign reserves by as much as US$500 million yesterday.

Now you can read the Bloomberg piece below :

Malaysia -- not coincidentally the worst performing of the major emerging Asian currencies against the dollar this month -- faring poorly by comparison, with a $100 billion reserves projection against short-term external debt of $128.2 billion, based on IMF estimates.

Looking beyond Asia, Turkey, South Africa and Mexico are among those deemed more vulnerable by the assessments.

Malaysia’s reserves are well down from a May 2013 high, and the slimmer adequacy ratio “limits the ability for BNM to intervene,” , said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd.

ANZ is currently reviewing its currency forecasts amid the current sell-off in emerging markets, according to Goh.