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

POLITICS & GOVERNMENT
Currency
Indonesia's central bank allows ringgit, baht in trade
Reuters
/
Reuters

October 16, 2017 23:58 pm MYT

-A+A
JAKARTA (Oct 16): Indonesia's central bank said on Monday it will allow transaction settlement for bilateral trade between Indonesia, Malaysia and Thailand to be conducted in local currencies.

The new regulation is aimed at reducing dependency on the US dollar and limiting exposure to volatile foreign exchange rates.

The rule, which goes into effect on Jan. 2 next year, allows Indonesian exporters or importers to settle payments with their Malaysian or Thai counterparts using rupiah, ringgit or baht.

[X] CLOSE
Sponsored Content


0:00



The three currencies are among the most volatile in the region.

Bank Indonesia, Bank of Thailand and Bank Negara Malaysia, will select banks that will be able to carry out such transactions, Indonesia's central bank said in a statement.

▼
WORLD
POLITICS & GOVERNMENT
Currency
Indonesia's central bank allows ringgit, baht in trade
Reuters
/
Reuters

October 16, 2017 23:58 pm MYT

-A+A
JAKARTA (Oct 16): Indonesia's central bank said on Monday it will allow transaction settlement for bilateral trade between Indonesia, Malaysia and Thailand to be conducted in local currencies.

The new regulation is aimed at reducing dependency on the US dollar and limiting exposure to volatile foreign exchange rates.

The rule, which goes into effect on Jan. 2 next year, allows Indonesian exporters or importers to settle payments with their Malaysian or Thai counterparts using rupiah, ringgit or baht.

[X] CLOSE
Sponsored Content


0:00



The three currencies are among the most volatile in the region.

Bank Indonesia, Bank of Thailand and Bank Negara Malaysia, will select banks that will be able to carry out such transactions, Indonesia's central bank said in a statement.

Select Language​▼
WORLD
PO
Currency
Indonesia's central bank allows ringgit, baht in trade
Reuters
/
Reuters

October 16, 2017 23:58 pm MYT

-A+A
JAKARTA (Oct 16): Indonesia's central bank said on Monday it will allow transaction settlement for bilateral trade between Indonesia, Malaysia and Thailand to be conducted in local currencies.

The new regulation is aimed at reducing dependency on the US dollar and limiting exposure to volatile foreign exchange rates.

The rule, which goes into effect on Jan. 2 next year, allows Indonesian exporters or importers to settle payments with their Malaysian or Thai counterparts using rupiah, ringgit or baht.

[X] CLOSE
Sponsored Content


0:00



The three currencies are among the most volatile in the region.

Bank Indonesia, Bank of Thailand and Bank Negara Malaysia, will select banks that will be able to carry out such transactions, Indonesia's central bank said in a statement.

The decline of US diplomacy could threaten the dollar’s global-reserve status
Eshe Nelson October 13, 2017
Bank notes of different currencies, including euro and US dollar,
Trying to stay on top (Reuters/Kai Pfaffenbach)
Barry Eichengreen, an economics professor at the University of California, Berkeley and expert in global currency systems, warns that the US dollar’s future as the all-mighty global-reserve currency is in danger. A deterioration in US relationships with other countries could lead central banks internationally to reconsider their reliance on the dollar, he wrote in a column for Project Syndicate this week.

The decline of US diplomacy could threaten the dollar’s global-reserve status
Eshe Nelson October 13, 2017
Bank notes of different currencies, including euro and US dollar,
Trying to stay on top (Reuters/Kai Pfaffenbach)
Barry Eichengreen, an economics professor at the University of California, Berkeley and expert in global currency systems, warns that the US dollar’s future as the all-mighty global-reserve currency is in danger. A deterioration in US relationships with other countries could lead central banks internationally to reconsider their reliance on the dollar, he wrote in a column for Project Syndicate this week.

The U.S. stands to save more than $500 million that the government owes to the United Nations by withdrawing from the organization’s cultural heritage arm.

The Department of State announced Thursday that it will officially pull back from the U.N. Educational, Scientific and Cultural Organization (UNESCO) by the end of 2018, taking an inactive observer role rather than that of a contributing member.

Most of Secretary of State Rex Tillerson’s rational for withdrawing stems from the “anti-Israel bias” at UNESCO, but the government is also concerned about about the U.S.’s growing debt to the organization.

“This decision was not taken lightly,” the State Department said in a press release, citing “concerns with mounting arrears at UNESCO, the need for fundamental reform in the organization, and continuing anti-Israel bias at UNESCO.”


The U.S. currently owes the international body $542 million in dues that former President Barack Obama refused to pay starting in 2011 when UNESCO voted to include Palestine as a member. UNESCO is best known for maintaining a list of world heritage sites around the globe, including Stonehenge in the U.K., the Grand Canyon in Arizona, and the historic district of Florence, Italy, but the group also funds international literacy and scientific programs.

When the U.S. government declined to pay its annual dues of more than $80 million out of protest in 2011, UNESCO lost about 22 percent of its yearly budget.

“This is a loss to UNESCO,” Irina Bokova, director general of UNESCO, said in a statement following notification of the U.S.’s withdrawal. “This is a loss for multilateralism.”

America’s involvement in UNESCO is of the utmost importance today, Bokova said, “when the rise of violent extremism and terrorism calls for new long-term responses for peace and security, to counter racism and antisemitism, to fight ignorance and discrimination.”

“In 2011, when payment of membership contributions was suspended at the 36th session of the UNESCO General Conference, I said I was convinced UNESCO had never mattered as much for the United States, or the United States for UNESCO,” Bokova added. “Despite the withholding of funding, since 2011, we have deepened the partnership between the United States and UNESCO, which has never been so meaningful.”

Even without the funding to UNESCO, the U.S. pays $3.3 billion to the U.N. and its various organizations and missions annually, and President Donald Trump has proposed a 40 percent cut to funding.

The U.S. stands to save more than $500 million that the government owes to the United Nations by withdrawing from the organization’s cultural heritage arm.

The Department of State announced Thursday that it will officially pull back from the U.N. Educational, Scientific and Cultural Organization (UNESCO) by the end of 2018, taking an inactive observer role rather than that of a contributing member.

Most of Secretary of State Rex Tillerson’s rational for withdrawing stems from the “anti-Israel bias” at UNESCO, but the government is also concerned about about the U.S.’s growing debt to the organization.

“This decision was not taken lightly,” the State Department said in a press release, citing “concerns with mounting arrears at UNESCO, the need for fundamental reform in the organization, and continuing anti-Israel bias at UNESCO.”


The U.S. currently owes the international body $542 million in dues that former President Barack Obama refused to pay starting in 2011 when UNESCO voted to include Palestine as a member. UNESCO is best known for maintaining a list of world heritage sites around the globe, including Stonehenge in the U.K., the Grand Canyon in Arizona, and the historic district of Florence, Italy, but the group also funds international literacy and scientific programs.

When the U.S. government declined to pay its annual dues of more than $80 million out of protest in 2011, UNESCO lost about 22 percent of its yearly budget.

“This is a loss to UNESCO,” Irina Bokova, director general of UNESCO, said in a statement following notification of the U.S.’s withdrawal. “This is a loss for multilateralism.”

America’s involvement in UNESCO is of the utmost importance today, Bokova said, “when the rise of violent extremism and terrorism calls for new long-term responses for peace and security, to counter racism and antisemitism, to fight ignorance and discrimination.”

“In 2011, when payment of membership contributions was suspended at the 36th session of the UNESCO General Conference, I said I was convinced UNESCO had never mattered as much for the United States, or the United States for UNESCO,” Bokova added. “Despite the withholding of funding, since 2011, we have deepened the partnership between the United States and UNESCO, which has never been so meaningful.”

Even without the funding to UNESCO, the U.S. pays $3.3 billion to the U.N. and its various organizations and missions annually, and President Donald Trump has proposed a 40 percent cut to funding.

The U.S. stands to save more than $500 million that the government owes to the United Nations by withdrawing from the organization’s cultural heritage arm.

The Department of State announced Thursday that it will officially pull back from the U.N. Educational, Scientific and Cultural Organization (UNESCO) by the end of 2018, taking an inactive observer role rather than that of a contributing member.

Most of Secretary of State Rex Tillerson’s rational for withdrawing stems from the “anti-Israel bias” at UNESCO, but the government is also concerned about about the U.S.’s growing debt to the organization.

“This decision was not taken lightly,” the State Department said in a press release, citing “concerns with mounting arrears at UNESCO, the need for fundamental reform in the organization, and continuing anti-Israel bias at UNESCO.”


The U.S. currently owes the international body $542 million in dues that former President Barack Obama refused to pay starting in 2011 when UNESCO voted to include Palestine as a member. UNESCO is best known for maintaining a list of world heritage sites around the globe, including Stonehenge in the U.K., the Grand Canyon in Arizona, and the historic district of Florence, Italy, but the group also funds international literacy and scientific programs.

When the U.S. government declined to pay its annual dues of more than $80 million out of protest in 2011, UNESCO lost about 22 percent of its yearly budget.

“This is a loss to UNESCO,” Irina Bokova, director general of UNESCO, said in a statement following notification of the U.S.’s withdrawal. “This is a loss for multilateralism.”

America’s involvement in UNESCO is of the utmost importance today, Bokova said, “when the rise of violent extremism and terrorism calls for new long-term responses for peace and security, to counter racism and antisemitism, to fight ignorance and discrimination.”

“In 2011, when payment of membership contributions was suspended at the 36th session of the UNESCO General Conference, I said I was convinced UNESCO had never mattered as much for the United States, or the United States for UNESCO,” Bokova added. “Despite the withholding of funding, since 2011, we have deepened the partnership between the United States and UNESCO, which has never been so meaningful.”

Even without the funding to UNESCO, the U.S. pays $3.3 billion to the U.N. and its various organizations and missions annually, and President Donald Trump has proposed a 40 percent cut to funding.

PROPERTY locations such as Kuala Lumpur city centre (KLCC) have long been favoured by foreign investors. But because of global economic uncertainties, many investors held back from buying in Malaysia and other countries.

With the ringgit’s current value, Malaysia is seen as an attractive market where there is a value proposition with major developments and infrastructure projects in the works.



“If you are a foreigner and looking for a luxury property in Kuala Lumpur... in KLCC there are many residential units which you can buy for below RM2.5 million.

“KLCC has among the cheapest luxury residential units versus other countries in Southeast Asia,” said Alpine Return Sdn Bhd chief operating officer Alan Koh.

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“I believe that prices are still quite reasonable in the KLCC area. You can still buy a RM2,000 per sq ft (psf) development on the specs that you put in, but I think in the future we are looking at RM3,000,” he said.

Koh said the KLCC area, for the longest time, has lacked in terms of pricing compared to the suburb areas.

Prices of properties in suburb areas like Damansara are averaging between RM1,200 psf and RM1,300 psf while in KLCC, it is about RM1,600 psf, he said.

“But because of land scarcity in the area, coupled with higher construction cost, this is sure to increase especially when the MRT Line 3 comes up,” he said, adding that prices will definitely move up to between RM2,500 and RM3,000 psf.

Koh was speaking to NST Property after the launching ceremony of Ascott Star KLCC service apartments and the official signing with The Ascott Ltd recently.

Alpine Return inked a deal with The Ascott Ltd to manage Ascott Star KLCC, which has a gross development value of RM1 billion.

Ascott Star KLCC will have 471 fully-fitted service apartments with sizes from a 700 sq ft (one-bedroom) to 2,972 sq ft (four-bedroom units).

Under the terms of agreement with The Ascott Ltd, it would manage a minimum of 353 fully-furnished units and provide amenities and conveniences of a hotel concierge, room service, broadband connectivity, daily housekeeping and laundry facilities.

Ascott Star KLCC will be developed on a 1.6ha piece of commercial land in Jalan Yap Kwan Seng in Kuala Lumpur.

The 58-storey tower will complement Star Residences Tower One and Tower Two.

Koh said the price tag for the serviced apartments in Ascott Star KLCC starts from RM1.7 million or between RM2,400 psf and RM2,500 psf.

He added that key markets for Ascott Star KLCC include China, Hong Kong, South Korea and Japan.

The first two towers of Star Residences sold for between RM1,600 and RM2,200 psf on average. Tower One and Tower Two have successfully achieved 100 per cent and 90 per cent sales rates, respectively.

China will 'compel' Saudi Arabia to trade oil in yuan — and that's going to affect the US dollar
"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them," Carl Weinberg, chief economist and managing director at High Frequency Economics, told CNBC
In recent years, several nations opposed to the dollar being the world's reserve currency have progressively sought to try and abandon it
OPEC kingpin Saudi Arabia is at the crux of the petrodollar

China will 'compel' Saudi Arabia to trade oil in yuan — and that's going to affect the US dollar
"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them," Carl Weinberg, chief economist and managing director at High Frequency Economics, told CNBC
In recent years, several nations opposed to the dollar being the world's reserve currency have progressively sought to try and abandon it
OPEC kingpin Saudi Arabia is at the crux of the petrodollar.

China will 'compel' Saudi Arabia to trade oil in yuan — and that's going to affect the US dollar
"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them," Carl Weinberg, chief economist and managing director at High Frequency Economics, told CNBC
In recent years, several nations opposed to the dollar being the world's reserve currency have progressively sought to try and abandon it
OPEC kingpin Saudi Arabia is at the crux of the petrodollar

NEW YORK, Oct. 11 (Xinhua) -- The U.S. dollar continued to decline against most major currencies on Wednesday, as investors mainly digested the newly-released minutes from U.S. Federal Reserve.
"Many participants continued to believe that the cyclical pressures associated with a tightening labor market or an economy operating above its potential were likely to show through to higher inflation over the medium term," according to the minutes on Wednesday.
In addition, many Fed officials judged that at least part of the softening in inflation this year was the result of idiosyncratic or one-time factors, and, thus, their effects were likely to fade over time.
However, other developments, such as the effects of earlier changes to government health-care programs that had been holding down health-care costs, might continue to do so for some time.
Analysts said the minutes showed that policymakers are open to a December interest-rate hike despite concerns about low inflation levels.
The dollar index, which measures the greenback against six major peers, was down 0.30 percent at 93.008 in late trading.

NEW YORK, Oct. 11 (Xinhua) -- The U.S. dollar continued to decline against most major currencies on Wednesday, as investors mainly digested the newly-released minutes from U.S. Federal Reserve.
"Many participants continued to believe that the cyclical pressures associated with a tightening labor market or an economy operating above its potential were likely to show through to higher inflation over the medium term," according to the minutes on Wednesday.
In addition, many Fed officials judged that at least part of the softening in inflation this year was the result of idiosyncratic or one-time factors, and, thus, their effects were likely to fade over time.
However, other developments, such as the effects of earlier changes to government health-care programs that had been holding down health-care costs, might continue to do so for some time.
Analysts said the minutes showed that policymakers are open to a December interest-rate hike despite concerns about low inflation levels.
The dollar index, which measures the greenback against six major peers, was down 0.30 percent at 93.008 in late trading.

The Chinese government announced plans Wednesday to raise $2 billion from international debt markets, its first such sale in over a decade.

China’s Ministry of Finance said it intends to launch an offering of U.S. dollar sovereign bonds in Hong Kong in coming days.

The Chinese government announced plans Wednesday to raise $2 billion from international debt markets, its first such sale in over a decade.

China’s Ministry of Finance said it intends to launch an offering of U.S. dollar sovereign bonds in Hong Kong in coming days.

The Chinese government announced plans Wednesday to raise $2 billion from international debt markets, its first such sale in over a decade.

China’s Ministry of Finance said it intends to launch an offering of U.S. dollar sovereign bonds in Hong Kong in coming days.

image: https://bcp.crwdcntrl.net/5/c=5593/b=45463407

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TOPICS Star Golden Hearts Award | Stop the Bullying | True or Not | Moderate Malaysia
Rail boost for construction
CORPORATE NEWS
Monday, 9 Oct 2017
By Gurmeet Kaur

image: http://www.thestar.com.my/~/media/online/2017/10/08/18/49/p2_bizd_mm_0910_p2a_mm_1.ashx/?w=620&h=413&crop=1&hash=3539266E270EC401867357F7E000CC3BC3812444

Next phase: A MRT train heading towards Kajang from Kuala Lumpur. MRT3, which is being touted as the rail story for 2018, has not been granted Cabinet approval.
Next phase: A MRT train heading towards Kajang from Kuala Lumpur. MRT3, which is being touted as the rail story for 2018, has not been granted Cabinet approval.

PETALING JAYA: Contract awards related to rail works continue to boost the construction sector with more to come.

This week alone, some RM4bil worth of Light Rail Transit Line 3 (LRT3) contracts were dished out to three companies, which brings to a total of RM7.4bil worth of LRT3 contracts awarded so far.

CIMB Research said it understood that Prasarana Malaysia Bhd, the project owner of LRT3, still has seven major civil work packages to be awarded for LRT3, which is expected to be concluded by year-end.

Besides the recently launched East Coast Railway Link (ECRL), the next big series of awards are said to be coming from Mass Rapid Transit 3 (MRT3) in the Klang Valley.

It was recently reported that the Government may consider expediting the construction of MRT3 (Circle Line).

This proposed rail link is estimated to cost RM35bil-RM40bil and expected to be completed two years earlier than the original 2027 target, CIMB Research said in a report.

MRT3, which is being touted as the rail story for 2018, has not been granted Cabinet approval.

CIMB Research said it understood that this approval is targeted to be achieved by mid next year. It will then take at least another six months from Cabinet approval to project awards.

So, it is little surprise that the construction sector index on Bursa Malaysia has been on the uptrend, having risen 15.39% as compared to the broad market’s 7.45%.

A key question though is whether these contracts will translate into hefty profits for the winners.

One concern is that construction companies don’t necessarily earn as much as investors hope they do because it is not known the actual cost they have incurred in securing these projects. Large players also have a much higher cost base.

Macquarie Research said that based on its checks with the contract winners, it expected LRT3 to bring a gross margin of between 8% and 11%.

Based on this, Gabungan AQRS Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

, which last week secured a RM1.2bil GS04 package to build guideways and three stations over a 4.2km stretch of the LRT3 alignment, is estimated to see its financial year 2018 (FY18) and FY19 earnings grow by 8% to 12% in tandem with the project timeline.

Its larger-than-expected order win brought the company’s order book to RM2.81bil – a jump of 86% from RM1.4bil as at end of last year.

Notably, the LRT3 award is Gabungan AQRS’ first major rail contract and put it in a better position to bid for other rail-related projects in the future such as East Cost Rail Link and KL-Singapore High-Speed Railway, said analysts.

Analysts have also upgraded the stock and raised their target prices. Shares of the mid-cap construction player rose 101.11% year-to-date to hit an all-time high of 1.82 on Friday.

In the case of Sunway Construction Group Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

(SunCon), the RM2.2bil LRT3 contract won has brought the value of jobs secured so far this year to a whopping RM3.8bil.

The contract bumps up its outstanding order book by more than half from RM4.3bil as at end of second quarter 2017 to RM6.5bil, closing in to the order books of big-cap IJM Corp Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

’s RM8.7bil and Gamuda Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

’s RM7.8bil, said CIMB Research.

SunCon’s order book also comprised mostly rail works related to MRT2 and LRT3, it added.

Assuming a pre-tax profit margin of 6%, TA Research expects the construction giant’s FY18 and FY19 earnings to grow by 12.9% and 15.5% respectively, contributing a net profit of about RM96.7mil throughout the contract period.

It has upgraded the stock from a “sell” to “buy” on the back of stronger earnings visibility over the next three years.

WCT Holdings Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png

is a big beneficiary of LRT3, having won three packages worth RM1.7bil.

The company’s outstanding order book has hit RM5.5bil, providing steady earnings for its construction division for the next three years, but its dwindling property sales and high gearing levels are areas of concern.

Budget 2018 Preview
Civil service, construction sector to benefit from Budget 2018 — analysts
Anette Appaduray
/
theedgemarkets.com

October 06, 2017 11:50 am MYT

-A+A
KUALA LUMPUR (Oct 6): Budget 2018 is expected to benefit the civil service, lower income households, and the construction and building sector, according to analysts.

"Bread-and-butter issues continue to rank at the top of Malaysians' concerns and, against the backdrop of a looming GE14, we expect Budget 2018 to lift social assistance and cash transfers to the civil service, lower income households, households employed in the agriculture sector, Felda settlers and army veterans, among others," said CIMB Research in an Economic Update today.

"Bantuan Rakyat 1Malaysia (BR1M) payments may be raised by 10% from RM6.8 billion in 2017 to RM7.5 billion in 2018, with amounts for each threshold of eligible household and individual incomes lifted by RM50 to RM150," the research house said.

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CIMB added that the Budget will address key concerns of the population, dubbing it a "rakyat-friendly" budget that will not ignore fiscal probity.

"We expect the budget deficit to narrow to 2.9% of gross domestic product (GDP) in 2018F (versus 3.0% of GDP in 2017F) as increased operating expenditure is sufficiently funded from improved fiscal revenue, driven by a higher GDP growth target (versus 4.0-5.0% in Budget 2017) and enhanced efficiency of tax collection," it added.

Meanwhile, TA Securities said in a Budget Preview today that next year's budget will be positive for the construction sector, which is expected to continue to be a "bright spot" due to the large infrastructure projects in the country such as the East Coast Rail Link, Mass Rapid Transit (MRT) and Light Rail Transit (LRT) lines.

"Much of the news about big ticket items like the East Coast Railway, MRT 2 and 3, LRT Line 3, Pan Borneo Highway, Gemas-Johor Double Track and KL-Singapore High Speed Rail have been known for some time but we expect greater progress and awards involving these contracts to materialise in 2018," TA Securities said.

It cited its top direct and indirect beneficiaries of the budget as being Gamuda Bhd, Gadang Holdings Bhd, and Chin Hin Group Bhd, among others.

"While property players may not see any relaxation in cooling measures, the brewers and tobacco companies may be spared from higher sin taxes next year," it added.

Run run. Enter level 0.60. Sell off now at 0.70 and above and buy back at 0.60.

Until 0.60 than follow this counter. Company of the shit.