FRom 1mdb.my/malaysian insider.com:~~~
Debt-ridden state investor 1Malaysia Development Bhd (1MDB) today said it should not be singled out as the cause for the ringgit’s drop in value against the US dollar.
The Finance Ministry-owned firm said it was “disappointed” with Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz’s remarks at a forum yesterday, where she was reported as saying that the ringgit would start recovering once issues surrounding 1MDB were resolved.
“1MDB is disappointed that Zeti appears to single out 1MDB for the current weakness of the ringgit. “We take this opportunity to highlight that the value of 1MDB’s assets exceeds its debt.
Zeti will be aware that 1MDB has consistently met, with no default, its interest service and principal repayment obligations, to both foreign and domestic lenders.
“Historically, never once has one company been linked in such a way to the value of the ringgit. We trust that the facts shared by 1MDB and the immediate clarifications issued to date, will provide clarity and assurance to all concerned parties,” the firm said.
The ringgit has been Asia’s worst performing currency of the year, having lost nearly 18% of its value against the dollar.
Zeti was speaking at a dialogue on the Malaysian economy, where she was also reported saying that other factors that would aid the ringgit’s recovery included the US Federal Reserve’s decision on interest rates, a recovery in world commodity and energy prices, and an improvement in China’s economy. – September 22, 2015.
Source – http://www.themalaysianinsider.com/malaysia/article/we-didnt-cause-ringgit-drop-says-1mdb#sthash.k6y2nLwd.dpuf
DESIDERATA: JUST wan comment, can? WRT: "1MDB said in a statement today that it should not be singled out for the current weakness of the ringgit as many other currencies had also dropped in value, “mainly due to the abrupt fall in oil prices, expectations of rising US interest rates and concerns of economic slowdown in emerging markets”.
Mr TWIster at the 1mdb, it has been reported by many parties the RINGGIT has been the WORST PERFORMING SOUTH-EASTASIAN CURRENCY consistently for THE PAST SIX MONTHS. LIKe thAlaysian wooden cabinet, these 1mdb people don't understand ENGLISH, so let desi educate MR ARul KAnda KAndasamy, another import from the MIddle EAst, The meaning of the word "bad", it's NOT GOOD, its comparative is "worse" when you compare with INDonesia, and its superlative is "WORST", when you compare with ....(DEar ER, You fill in the blanks), YL, DEsi has run out of breath!
Ringgit to hit 3.55-4.20 level against US dollar in Q4
US Federal Reserve will be very careful on its interest rates increase to ensure that growth momentum is not jeopardised, says Hong Leong Investment Bank.
KUALA LUMPUR: The ringgit is forecast to reach the 3.55 to 4.20 level against the US dollar by the fourth quarter of this year, and hit 4.00 at year-end as the strength of the greenback will eventually taper off due the recent dovish Federal Open Market Committee (FOMC) statement.
Hong Leong Investment Bank (HLIB) said the depreciation pressure on emerging currencies, including the ringgit, would ease in the short term.
The investment bank said the US Federal Reserve (Fed) would be very careful on its interest rates lift off to ensure that growth momentum was not jeopardised.
“We expect the Fed lift off during the December FOMC meeting. For 2016, we believe that the rate hike will be gradual, at best, a 25 basis point hike to a total of 100 basis points,” it added.
On China, HLIB said the Chinese authorities would now refrain from making major moves that would further destabilise its market.
“Moreover, we expect fiscal measures to be introduced by year-end to arrest the declining growth momentum,” it added.
The investment bank noted that the developments would eventually help to ease the concerns about competitive devaluation pressure and protracted slowdown in the Chinese economy.
On the local front, HLIB said the mandate of government-linked companies’ (GLC) fund repatriation would continue to gain pace while the Fed was likely to go even slower on its interest rates hike plan.
It also expects Bank Negara Malaysia’s reserves to stabilise, possibly inching higher in the next few months.
“The psychological level to watch out for is US$92 billion as any level below this will denote reserves to short-term external debt ratio of less than 1.0 times,” it said.
HLIB also expects the upcoming 2016 Budget announcement on October 23 to contain some measures to safeguard growth.
It reiterated that the central bank would continue to leave its overnight policy rate unchanged at 3.25% until end-2015.