KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) believes the normalisation rate for the country’s key Overnight Policy Rate (OPR) is around 3.50 per cent.

This suggests that there could be two interest rate hikes between next year and 2019, according to AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir. Sulaiman said the first hike could possibly be introduced by Bank Negara Malaysia in the first quarter of 2018 and second either in the second half of next year or first half of 2019.

KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) believes the normalisation rate for the country’s key Overnight Policy Rate (OPR) is around 3.50 per cent.

This suggests that there could be two interest rate hikes between next year and 2019, according to AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir. Sulaiman said the first hike could possibly be introduced by Bank Negara Malaysia in the first quarter of 2018 and second either in the second half of next year or first half of 2019.

Banks to see wider margins when OPR climbs

Astro AwaniToggle navigation


BERITA | BISNES
Eksport Malaysia dijangka berkembang 17.9 peratus pada Oktober - RAM
Diterbitkan pada Disember 06, 2017 08:31 MYT

Eksport Malaysia dijangka berkembang 17.9 peratus pada Oktober - RAM
Pertumbuhan import dijangka meningkat 20.2 peratus memandangkan hubung kaitnya yang kukuh sebagai faktor input utama bagi barangan dieksport dalam keadaan hubungan baik Malaysia dengan rantaian nilai global. - Gambar hiasan
KUALA LUMPUR: Eksport Malaysia dijangka mengekalkan momentum pertumbuhan dua digit berbanding tahun pada Oktober 2017, peningkatan pada kadar pantas 17.9 peratus, menurut RAM Ratings Services Bhd.

Dalam kenyataan hari ini, agensi penarafan itu berkata, sebahagian besarnya berasaskan jangkaan pemulihan pertumbuhan eksport ke Singapura dan Jepun, serta peningkatan kesan asas yang rendah pada Oktober tahun lepas.

Eksport bahan api mineral dijangka menyokong pertumbuhan eksport keseluruhan bagi beberapa bulan akan datang, menurutnya.

"Ini didorong oleh harga minyak mentah Brent yang kukuh secara ketara sejak September, yang sewajarnya mendorong harga eksport purata lebih tinggi, dan, seterusnya, pertumbuhan nominal eksport bahan api mineral," menurut agensi penarafan itu.

Mengenai pertumbuhan import, ia dijangka meningkat 20.2 peratus berbanding tahun pada Oktober, memandangkan hubung kaitnya yang kukuh sebagai faktor input utama bagi barangan dieksport dalam keadaan hubungan baik Malaysia dengan rantaian nilai global, menurut RAM Ratings.

Astro AwaniToggle navigation


BERITA | BISNES
Eksport Malaysia dijangka berkembang 17.9 peratus pada Oktober - RAM
Diterbitkan pada Disember 06, 2017 08:31 MYT

Eksport Malaysia dijangka berkembang 17.9 peratus pada Oktober - RAM
Pertumbuhan import dijangka meningkat 20.2 peratus memandangkan hubung kaitnya yang kukuh sebagai faktor input utama bagi barangan dieksport dalam keadaan hubungan baik Malaysia dengan rantaian nilai global. - Gambar hiasan
KUALA LUMPUR: Eksport Malaysia dijangka mengekalkan momentum pertumbuhan dua digit berbanding tahun pada Oktober 2017, peningkatan pada kadar pantas 17.9 peratus, menurut RAM Ratings Services Bhd.

Dalam kenyataan hari ini, agensi penarafan itu berkata, sebahagian besarnya berasaskan jangkaan pemulihan pertumbuhan eksport ke Singapura dan Jepun, serta peningkatan kesan asas yang rendah pada Oktober tahun lepas.

Eksport bahan api mineral dijangka menyokong pertumbuhan eksport keseluruhan bagi beberapa bulan akan datang, menurutnya.

"Ini didorong oleh harga minyak mentah Brent yang kukuh secara ketara sejak September, yang sewajarnya mendorong harga eksport purata lebih tinggi, dan, seterusnya, pertumbuhan nominal eksport bahan api mineral," menurut agensi penarafan itu.

Mengenai pertumbuhan import, ia dijangka meningkat 20.2 peratus berbanding tahun pada Oktober, memandangkan hubung kaitnya yang kukuh sebagai faktor input utama bagi barangan dieksport dalam keadaan hubungan baik Malaysia dengan rantaian nilai global, menurut RAM Ratings.

Ringgit hits 4.0470, appreciates 10pc since Jan

Ringgit hits 4.0470, appreciates 10pc since Jan

Ringgit hits 4.0470, appreciates 10pc since Jan

Psiptek and London biscuit is lower now. Last time 0.20 and 0.80 respectively.

Psiptek and London biscuit cheap to buy.

Psiptek 7145 and lonbisc 7126 still cheap.

Lonbisc 7126 counter

Psiptek 7145 counter

Ringgit up to 4.05 against USD mean decrease in its costs.

Ringgit uptrend to 4.06 against USD and 3.01 against SGD .

Will ringgit break 4.00 against USD and 3.00 against SGD?

Will ringgit break 4.00 against usd and 3.00 against SGD?

Report finally out http://www.malaysiastock.biz/Company-Announcement.aspx?id=1017550

Strong global economic growth and Saudi Arabia bringing a risk premium to oil prices could send Brent oil prices surging to $80 next year, more than 25 percent compared to current prices, according to economist Jim O’Neill, a former chairman of Goldman Sachs Asset Management.

At 11:59am EST on Monday, Brent Crude was down 0.79 percent at $63.01.

“While oil prices could be about $60 per barrel in November 2018, my guess is that they will have risen to about $80 per barrel in the meantime,” O’Neill wrote in Barron’s on Saturday.

Already run at 0.07 lastime. Now worth 0.03.

There will be an OPEC deal extension—no matter the public tussling between opposing forces in the industry cartel—if the world’s largest oil producers are really determined to end the supply glut.

On the Latest US Dollar Weakness
Adam Button Adam Button
AshrafLaidi.com
The main catalyst for US dollar bulls over the past 2 months has been tax reform, but that could also be the catalyst for the bears as Ashraf indicated here and here. The yen was the top performer Wednesday while the US dollar lagged. New Zealand retail sales beat estimates in early Asia-Pacific trading. The Premium Insights took 90-pip gain on 1 of the 2 EURUSD trades. 6 of the existing Premium trades are currently in the green.

For months various markets have been pricing in changes to the US tax code. It's impossible to say exactly what's priced in but it's clear that passing something is more likely than ever. So why the US dollar weakness?

We've been writing this week about the divergence between stock markets and USD/JPY. In the past , there has been a solid correlation between the pair and equity prices. Recently, however, the S&P 500 and Nikkei have soared while USD/JPY has languished.

One theory is that traders are wary of 'selling the fact' and getting out of the way early. Perhaps that's true. Another is that the Fed is increasingly getting worried about low inflation. Today's release of the FOMC minutes showed some members want to hit the pause button after a December hike and wait for inflation to get closer to target. There is probably some truth in that as well.

Back to the tax story. The dollar is selling because of the tax plan. More specifically, the details of the plan. It's increasingly clear this isn't a broad-based tax cut. It's heavily skewed to corporations and the top earners, while offering little to the vast majority of Americans. See Ashraf's notes on the disappointing tax holiday for US multinationals and rising cost of debt in the aforementioned pieces.

Maybe the market is saying that this plan isn't going to boost incomes, wages, investment or growth. Instead it will add to the deficit and lead to spending cuts down the road. What it will do is boost corporate profits and that explains the rosy reaction in stocks

On the Latest US Dollar Weakness
Adam Button Adam Button
AshrafLaidi.com
The main catalyst for US dollar bulls over the past 2 months has been tax reform, but that could also be the catalyst for the bears as Ashraf indicated here and here. The yen was the top performer Wednesday while the US dollar lagged. New Zealand retail sales beat estimates in early Asia-Pacific trading. The Premium Insights took 90-pip gain on 1 of the 2 EURUSD trades. 6 of the existing Premium trades are currently in the green.

For months various markets have been pricing in changes to the US tax code. It's impossible to say exactly what's priced in but it's clear that passing something is more likely than ever. So why the US dollar weakness?

We've been writing this week about the divergence between stock markets and USD/JPY. In the past , there has been a solid correlation between the pair and equity prices. Recently, however, the S&P 500 and Nikkei have soared while USD/JPY has languished.

One theory is that traders are wary of 'selling the fact' and getting out of the way early. Perhaps that's true. Another is that the Fed is increasingly getting worried about low inflation. Today's release of the FOMC minutes showed some members want to hit the pause button after a December hike and wait for inflation to get closer to target. There is probably some truth in that as well.

Back to the tax story. The dollar is selling because of the tax plan. More specifically, the details of the plan. It's increasingly clear this isn't a broad-based tax cut. It's heavily skewed to corporations and the top earners, while offering little to the vast majority of Americans. See Ashraf's notes on the disappointing tax holiday for US multinationals and rising cost of debt in the aforementioned pieces.

Maybe the market is saying that this plan isn't going to boost incomes, wages, investment or growth. Instead it will add to the deficit and lead to spending cuts down the road. What it will do is boost corporate profits and that explains the rosy reaction in stocks

KUALA LUMPUR (Nov 22): The ringgit strengthened to 4.1180 this afternoon against the US dollar, its highest in 27 months since it closed at 4.1058 on Aug 19, 2015.

Year to date, the ringgit has appreciated 8.2% from 4.4862 against the US dollar on Dec 30, 2016.

Reuters reported that most Asian currencies firmed on Wednesday on the back of a weakened US dollar on dovish comments from Federal Reserve chair Janet Yellen, who stuck by her prediction that US inflation would rebound, though she added she was "very uncertain" of it happening.

Bank Negara Malaysia also announced this afternoon that Malaysia's international reserves were unchanged at US$101.5 billion (equivalent to RM429 billion) as at Nov 15 — compared to two weeks ago on Oct 31.

The reserves position is sufficient to finance 7.5 months of retained imports and is 1.1 times the short-term external debt, the central bank said.

As an oil exporter, the ringgit tends to rise when the prices of crude oil go up. At the time of writing, Brent crude oil futures were at US$63.31 per barrel, up 1.2% from its close of US$62.57 per barrel yesterday.

KUALA LUMPUR (Nov 22): The ringgit strengthened to 4.1180 this afternoon against the US dollar, its highest in 27 months since it closed at 4.1058 on Aug 19, 2015.

Year to date, the ringgit has appreciated 8.2% from 4.4862 against the US dollar on Dec 30, 2016.

Reuters reported that most Asian currencies firmed on Wednesday on the back of a weakened US dollar on dovish comments from Federal Reserve chair Janet Yellen, who stuck by her prediction that US inflation would rebound, though she added she was "very uncertain" of it happening.

Bank Negara Malaysia also announced this afternoon that Malaysia's international reserves were unchanged at US$101.5 billion (equivalent to RM429 billion) as at Nov 15 — compared to two weeks ago on Oct 31.

The reserves position is sufficient to finance 7.5 months of retained imports and is 1.1 times the short-term external debt, the central bank said.

As an oil exporter, the ringgit tends to rise when the prices of crude oil go up. At the time of writing, Brent crude oil futures were at US$63.31 per barrel, up 1.2% from its close of US$62.57 per barrel yesterday.

KUALA LUMPUR: The ringgit was higher against the US dollar early Wednesday as demand for the local note intensified with heightened investor confidence in the currency's fundamentals.

Dealers attributed the positive spillover to Malaysia's 6.2 per cent economic growth in the third quarter of this year and the dollar's subdued performance.

At 9 am(0100 gmt), the local unit was traded 120 basis points higher at 4.1260/1290 against the greenback from Tuesday's close of 4.1380/1420.

OANDA Head of Trading Asia-Pacific Stephen Innes told Bernama the ringgit has been unfettered by the Europen Union's political noise or the recent bid in the dollar across broader markets.


“As it stands, a January 2018 rate hike looks all, but, certain and the robust Q3 GDP does suggest an additional rate hike for 2018, suggesting the ringgit has a long way to go before the currency runs out of gas,” said Innes.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

The ringgit appreciated against the Singapore dollar to 3.0475/0504 from 3.0525/0568 on Tuesday and increased against the yen to 3.6741/6771 from 3.6805/6844 Tuesday.

The local unit improved versus the euro to 4.8435/8483 from 4.8526/8586 and rose against the British pound to 5.4653/4705 from Tuesday's 5.4779/4836. -- Bernama


Read more at https://www.thestar.com.my/business/business-news/2017/11/22/ringgit-higher-against-us$/#ASQxZYBgz0JeMQTo.99

KUALA LUMPUR: The ringgit was higher against the US dollar early Wednesday as demand for the local note intensified with heightened investor confidence in the currency's fundamentals.

Dealers attributed the positive spillover to Malaysia's 6.2 per cent economic growth in the third quarter of this year and the dollar's subdued performance.

At 9 am(0100 gmt), the local unit was traded 120 basis points higher at 4.1260/1290 against the greenback from Tuesday's close of 4.1380/1420.

OANDA Head of Trading Asia-Pacific Stephen Innes told Bernama the ringgit has been unfettered by the Europen Union's political noise or the recent bid in the dollar across broader markets.


“As it stands, a January 2018 rate hike looks all, but, certain and the robust Q3 GDP does suggest an additional rate hike for 2018, suggesting the ringgit has a long way to go before the currency runs out of gas,” said Innes.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

The ringgit appreciated against the Singapore dollar to 3.0475/0504 from 3.0525/0568 on Tuesday and increased against the yen to 3.6741/6771 from 3.6805/6844 Tuesday.

The local unit improved versus the euro to 4.8435/8483 from 4.8526/8586 and rose against the British pound to 5.4653/4705 from Tuesday's 5.4779/4836. -- Bernama


Read more at https://www.thestar.com.my/business/business-news/2017/11/22/ringgit-higher-against-us$/#ASQxZYBgz0JeMQTo.99

When market recovered and good again, it may skyrocketing. It is matter of time.

Select Language​▼
CORPORATE
FROM THE EDGE
Rate hike to come on the back of a stronger ringgit
Supriya Surendran & Chester Tay
/
The Edge Financial Daily

November 20, 2017 10:38 am +08

This article first appeared in The Edge Financial Daily, on November 20, 2017.

-A+A
KUALA LUMPUR: The expectation of an interest rate hike next year is likely to be on the back of a stronger ringgit, with some economists predicting it could breach 4.000 to the US dollar in the next 12 months.

The local currency has strengthened 7.4% year to date against the US dollar — the second best-performing currency in Southeast Asia after the baht which gained 8.4% in the same period according to Bloomberg data. The ringgit closed at a fresh one-year high of 4.1610 to the greenback last Friday.

Barclays plc senior regional economist Rahul Bajoria is one of the few economists who predict the ringgit could hit the 4.000 to 3.950 mark, premised on stronger economic growth, international reserves and current account balances.

“We think the ringgit remains attractive and should continue to appreciate in the next 12 months. We like the currency based on [the country’s] strong economic growth, improving reserves and current account balances,” he told The Edge Financial Daily via email.

Deutsche Bank head of Asia macro strategy Sameer Goel pointed out that Malaysia’s balance of payments is sensitive to interest rate differentials, and it would be important to see the basis between global rates and those in Malaysia.

“We expect the same to narrow, as the US Federal Reserve is likely to hike rates in December and another three times in 2018. That said, the ringgit is cheap on the average of our valuation models, and so any likely fallout on the currency should be limited,” he explained.

Select Language​▼
CORPORATE
FROM THE EDGE
Rate hike to come on the back of a stronger ringgit
Supriya Surendran & Chester Tay
/
The Edge Financial Daily

November 20, 2017 10:38 am +08

This article first appeared in The Edge Financial Daily, on November 20, 2017.

-A+A
KUALA LUMPUR: The expectation of an interest rate hike next year is likely to be on the back of a stronger ringgit, with some economists predicting it could breach 4.000 to the US dollar in the next 12 months.

The local currency has strengthened 7.4% year to date against the US dollar — the second best-performing currency in Southeast Asia after the baht which gained 8.4% in the same period according to Bloomberg data. The ringgit closed at a fresh one-year high of 4.1610 to the greenback last Friday.

Barclays plc senior regional economist Rahul Bajoria is one of the few economists who predict the ringgit could hit the 4.000 to 3.950 mark, premised on stronger economic growth, international reserves and current account balances.

“We think the ringgit remains attractive and should continue to appreciate in the next 12 months. We like the currency based on [the country’s] strong economic growth, improving reserves and current account balances,” he told The Edge Financial Daily via email.

Deutsche Bank head of Asia macro strategy Sameer Goel pointed out that Malaysia’s balance of payments is sensitive to interest rate differentials, and it would be important to see the basis between global rates and those in Malaysia.

“We expect the same to narrow, as the US Federal Reserve is likely to hike rates in December and another three times in 2018. That said, the ringgit is cheap on the average of our valuation models, and so any likely fallout on the currency should be limited,” he explained.

Select Language​▼
CORPORATE
FROM THE EDGE
Rate hike to come on the back of a stronger ringgit
Supriya Surendran & Chester Tay
/
The Edge Financial Daily

November 20, 2017 10:38 am +08

This article first appeared in The Edge Financial Daily, on November 20, 2017.

-A+A
KUALA LUMPUR: The expectation of an interest rate hike next year is likely to be on the back of a stronger ringgit, with some economists predicting it could breach 4.000 to the US dollar in the next 12 months.

The local currency has strengthened 7.4% year to date against the US dollar — the second best-performing currency in Southeast Asia after the baht which gained 8.4% in the same period according to Bloomberg data. The ringgit closed at a fresh one-year high of 4.1610 to the greenback last Friday.

Barclays plc senior regional economist Rahul Bajoria is one of the few economists who predict the ringgit could hit the 4.000 to 3.950 mark, premised on stronger economic growth, international reserves and current account balances.

“We think the ringgit remains attractive and should continue to appreciate in the next 12 months. We like the currency based on [the country’s] strong economic growth, improving reserves and current account balances,” he told The Edge Financial Daily via email.

Deutsche Bank head of Asia macro strategy Sameer Goel pointed out that Malaysia’s balance of payments is sensitive to interest rate differentials, and it would be important to see the basis between global rates and those in Malaysia.

“We expect the same to narrow, as the US Federal Reserve is likely to hike rates in December and another three times in 2018. That said, the ringgit is cheap on the average of our valuation models, and so any likely fallout on the currency should be limited,” he explained.

Bren break $62 above

Brent break $61 and above

Brent break $61 and above.

Brent break $61 and above.

Brent now at $60.90/barrel.

Brent now at $60.90/barrel.

Brent now at $60.90 /barrel.

U.S. Oil & Gas Rig Count Falls As Brent Breaks $60

By Julianne Geiger - Oct 27, 2017, 12:16 PM CDT
Oil
As Saudi’s comments regarding the OPEC extension send the Brent Crude benchmark over $60 in mid-day trading for the first time in more than two years, oil and gas rigs in the United States fell for yet another week, according to Baker Hughes, dipping 4 rigs.

The total oil and gas rig count in the United States now stands at 909 rigs, up 352 rigs from the year prior, with the number of oil rigs in the United States increasing by 1 this week and the number of natural gas rigs decreasing by 5. Canada saw a decline of 11 in the number of active oil and gas rigs. The US oil rig count now stands at 737.

The spot price for WTI is also trading up to its highest level in six months, up 2.07% on the day at $53.73 at 12:30pm EST. Brent crude was trading up 1.61% at $59.99 at that time—more than $2 over last week’s close.

The price increase is largely thanks to Saudi Crown Prince Mohammed bin Salman’s non-specific backing of an extended OPEC deal, reassurances that the Aramco IPO is still on track, and his commitment to move the country beyond fossil fuels. Fears that the Iraqi vs. Kurd conflict may not find a quick end also lent support to prices.

U.S. Oil & Gas Rig Count Falls As Brent Breaks $60

By Julianne Geiger - Oct 27, 2017, 12:16 PM CDT
Oil
As Saudi’s comments regarding the OPEC extension send the Brent Crude benchmark over $60 in mid-day trading for the first time in more than two years, oil and gas rigs in the United States fell for yet another week, according to Baker Hughes, dipping 4 rigs.

The total oil and gas rig count in the United States now stands at 909 rigs, up 352 rigs from the year prior, with the number of oil rigs in the United States increasing by 1 this week and the number of natural gas rigs decreasing by 5. Canada saw a decline of 11 in the number of active oil and gas rigs. The US oil rig count now stands at 737.

The spot price for WTI is also trading up to its highest level in six months, up 2.07% on the day at $53.73 at 12:30pm EST. Brent crude was trading up 1.61% at $59.99 at that time—more than $2 over last week’s close.

The price increase is largely thanks to Saudi Crown Prince Mohammed bin Salman’s non-specific backing of an extended OPEC deal, reassurances that the Aramco IPO is still on track, and his commitment to move the country beyond fossil fuels. Fears that the Iraqi vs. Kurd conflict may not find a quick end also lent support to prices.

Brent reached $59 above.

Brent reached $59 above

Spotlight: Cambodia's central bank encouraging use of Chinese yuan
Source: Xinhua| 2017-10-25 01:51:13|

PHNOM PENH, Oct. 24 (Xinhua) -- The National Bank of Cambodia (NBC), the country's central bank, has been encouraging businesses and individuals to use renminbi (RMB), or the Chinese yuan, in order to further increase trade and investment volumes between the two countries, officials said on Tuesday.
Seventeen out of 54 banks in the country currently transacted in yuan, and four of them, Bank of China Phnom Penh Branch, Industrial and Commercial Bank of China (ICBC) Phnom Penh Branch, Canadia Bank, and First Commercial Bank, received deposits in yuan, said NBC's deputy governor Neav Chanthana.
"The use of yuan will provide a lot of advantages to Cambodia, especially in attracting more Chinese investors and tourists," she said during a conference here on the Belt and Road Initiative, which was themed Promotion of the Use of RMB and KHR (Cambodian currency riel) in Cross-Border Trade and Investment.
The half-day conference brought together about 200 representatives of banks, financial institutions and companies in Cambodia.
Chanthana said more banks in Cambodia are willing to accept RMB for cross-border settlements.
"The promotion of RMB and KHR is in line with the Cambodian government's policy to support the Belt and Road Initiative," the deputy governor said. "It will increase China and Cambodia's economic and financial linkages."
She added that the Cambodian government has also allowed Chinese tourists to use RMB.
NBC's director-general Chea Serey said the conference was aimed at encouraging companies to settle their business transactions in yuan.
"We want Cambodian and Chinese traders to settle their business transactions in either yuan or riel," she told reporters on the sidelines of the conference. "By doing so, we can reduce or eliminate exchange rate risks for traders."
Pan Hongsheng, deputy secretary-general of the People's Bank of China's Monetary Policy Committee, said, "The status of China as a major trading and investment country and the Belt and Road Initiative will bring broad space and development potential for RMB internationalization."
He added that RMB settlements for overseas financial institutions and enterprises would eliminate exchange rate risks and promote trade and investment ties with China.

Spotlight: Cambodia's central bank encouraging use of Chinese yuan
Source: Xinhua| 2017-10-25 01:51:13|

PHNOM PENH, Oct. 24 (Xinhua) -- The National Bank of Cambodia (NBC), the country's central bank, has been encouraging businesses and individuals to use renminbi (RMB), or the Chinese yuan, in order to further increase trade and investment volumes between the two countries, officials said on Tuesday.
Seventeen out of 54 banks in the country currently transacted in yuan, and four of them, Bank of China Phnom Penh Branch, Industrial and Commercial Bank of China (ICBC) Phnom Penh Branch, Canadia Bank, and First Commercial Bank, received deposits in yuan, said NBC's deputy governor Neav Chanthana.
"The use of yuan will provide a lot of advantages to Cambodia, especially in attracting more Chinese investors and tourists," she said during a conference here on the Belt and Road Initiative, which was themed Promotion of the Use of RMB and KHR (Cambodian currency riel) in Cross-Border Trade and Investment.
The half-day conference brought together about 200 representatives of banks, financial institutions and companies in Cambodia.
Chanthana said more banks in Cambodia are willing to accept RMB for cross-border settlements.
"The promotion of RMB and KHR is in line with the Cambodian government's policy to support the Belt and Road Initiative," the deputy governor said. "It will increase China and Cambodia's economic and financial linkages."
She added that the Cambodian government has also allowed Chinese tourists to use RMB.
NBC's director-general Chea Serey said the conference was aimed at encouraging companies to settle their business transactions in yuan.
"We want Cambodian and Chinese traders to settle their business transactions in either yuan or riel," she told reporters on the sidelines of the conference. "By doing so, we can reduce or eliminate exchange rate risks for traders."
Pan Hongsheng, deputy secretary-general of the People's Bank of China's Monetary Policy Committee, said, "The status of China as a major trading and investment country and the Belt and Road Initiative will bring broad space and development potential for RMB internationalization."
He added that RMB settlements for overseas financial institutions and enterprises would eliminate exchange rate risks and promote trade and investment ties with China.

Spotlight: Cambodia's central bank encouraging use of Chinese yuan
Source: Xinhua| 2017-10-25 01:51:13|

PHNOM PENH, Oct. 24 (Xinhua) -- The National Bank of Cambodia (NBC), the country's central bank, has been encouraging businesses and individuals to use renminbi (RMB), or the Chinese yuan, in order to further increase trade and investment volumes between the two countries, officials said on Tuesday.
Seventeen out of 54 banks in the country currently transacted in yuan, and four of them, Bank of China Phnom Penh Branch, Industrial and Commercial Bank of China (ICBC) Phnom Penh Branch, Canadia Bank, and First Commercial Bank, received deposits in yuan, said NBC's deputy governor Neav Chanthana.
"The use of yuan will provide a lot of advantages to Cambodia, especially in attracting more Chinese investors and tourists," she said during a conference here on the Belt and Road Initiative, which was themed Promotion of the Use of RMB and KHR (Cambodian currency riel) in Cross-Border Trade and Investment.
The half-day conference brought together about 200 representatives of banks, financial institutions and companies in Cambodia.
Chanthana said more banks in Cambodia are willing to accept RMB for cross-border settlements.
"The promotion of RMB and KHR is in line with the Cambodian government's policy to support the Belt and Road Initiative," the deputy governor said. "It will increase China and Cambodia's economic and financial linkages."
She added that the Cambodian government has also allowed Chinese tourists to use RMB.
NBC's director-general Chea Serey said the conference was aimed at encouraging companies to settle their business transactions in yuan.
"We want Cambodian and Chinese traders to settle their business transactions in either yuan or riel," she told reporters on the sidelines of the conference. "By doing so, we can reduce or eliminate exchange rate risks for traders."
Pan Hongsheng, deputy secretary-general of the People's Bank of China's Monetary Policy Committee, said, "The status of China as a major trading and investment country and the Belt and Road Initiative will bring broad space and development potential for RMB internationalization."
He added that RMB settlements for overseas financial institutions and enterprises would eliminate exchange rate risks and promote trade and investment ties with China.

The argument for re-denomination

A contemporary model for Vietnam is Belarus. In 2016 the Belarusian ruble was re-denominated by taking four zeros off the currency. Before re-denomination, US$1 was about 20,000 rubles, making it comparable to the current dong. What was 10,000 BYR is now 1 BYN, so 1 USD is about 2 BYR.

The new currency is modeled on the euro, with coins similar in style to the euro also introduced. The smaller denominations are easier to remember, and spending low denominations feels more sensible as a consumer.

Removing four zeros would turn a 10,000 dong note into a 1 dong note, and US$1 would equal about around 2 dong. To give an idea of the change, notes currently in circulation would convert as follows:

500 = 0.05
1,000 = 0.10
2,000 = 0.20
5,000 = 0.50
10,000 = 1
20,000 = 2
50,000 = 5
100,000 = 10
200,000 = 20
500,000 = 50

The new dong would pave the way for a reintroduction of coins (not counting the rare coins currently in circulation). If Vietnam plans to go cashless by 2020, then maybe coins will be redundant. But at least the option would be there.

A re-denomination would have positive effects such as becoming a currency that is taken seriously. Large projects would be quoted in dong instead of US dollars, as Thailand quotes in baht for its big projects. And eventually you might be able to exchange your leftover dong at exchange booths around the world, which most places won’t deal with.

If Vietnam is to maintain its economic success, and aspire to being ASEAN’s “Silicon Valley”, it is time to consider re-denominating the dong.

The argument for re-denomination

A contemporary model for Vietnam is Belarus. In 2016 the Belarusian ruble was re-denominated by taking four zeros off the currency. Before re-denomination, US$1 was about 20,000 rubles, making it comparable to the current dong. What was 10,000 BYR is now 1 BYN, so 1 USD is about 2 BYR.

The new currency is modeled on the euro, with coins similar in style to the euro also introduced. The smaller denominations are easier to remember, and spending low denominations feels more sensible as a consumer.

Removing four zeros would turn a 10,000 dong note into a 1 dong note, and US$1 would equal about around 2 dong. To give an idea of the change, notes currently in circulation would convert as follows:

500 = 0.05
1,000 = 0.10
2,000 = 0.20
5,000 = 0.50
10,000 = 1
20,000 = 2
50,000 = 5
100,000 = 10
200,000 = 20
500,000 = 50

The new dong would pave the way for a reintroduction of coins (not counting the rare coins currently in circulation). If Vietnam plans to go cashless by 2020, then maybe coins will be redundant. But at least the option would be there.

A re-denomination would have positive effects such as becoming a currency that is taken seriously. Large projects would be quoted in dong instead of US dollars, as Thailand quotes in baht for its big projects. And eventually you might be able to exchange your leftover dong at exchange booths around the world, which most places won’t deal with.

If Vietnam is to maintain its economic success, and aspire to being ASEAN’s “Silicon Valley”, it is time to consider re-denominating the dong.

The argument for re-denomination

A contemporary model for Vietnam is Belarus. In 2016 the Belarusian ruble was re-denominated by taking four zeros off the currency. Before re-denomination, US$1 was about 20,000 rubles, making it comparable to the current dong. What was 10,000 BYR is now 1 BYN, so 1 USD is about 2 BYR.

The new currency is modeled on the euro, with coins similar in style to the euro also introduced. The smaller denominations are easier to remember, and spending low denominations feels more sensible as a consumer.

Removing four zeros would turn a 10,000 dong note into a 1 dong note, and US$1 would equal about around 2 dong. To give an idea of the change, notes currently in circulation would convert as follows:

500 = 0.05
1,000 = 0.10
2,000 = 0.20
5,000 = 0.50
10,000 = 1
20,000 = 2
50,000 = 5
100,000 = 10
200,000 = 20
500,000 = 50

The new dong would pave the way for a reintroduction of coins (not counting the rare coins currently in circulation). If Vietnam plans to go cashless by 2020, then maybe coins will be redundant. But at least the option would be there.

A re-denomination would have positive effects such as becoming a currency that is taken seriously. Large projects would be quoted in dong instead of US dollars, as Thailand quotes in baht for its big projects. And eventually you might be able to exchange your leftover dong at exchange booths around the world, which most places won’t deal with.

If Vietnam is to maintain its economic success, and aspire to being ASEAN’s “Silicon Valley”, it is time to consider re-denominating the dong.

Catalonia vote: Spain expected to impose direct rule

Catalonia vote: Spain expected to impose direct rule