Ringgit should be at about 3.70 to USD, says Nazir
Publish date: Thu, 20 Aug 2015, 03:13 AM
KUALA LUMPUR: The ringgit should be trading at about 3.70 to the US dollar based on current fundamentals but investor sentiment has derailed the local currency beyond that level, said CIMB Chairman, Datuk Seri Nazir Razak.
He said the bank's research analysts thought that based on the recent trade-weighted basis, the ringgit should settle at 3.70 (per US dollar) or so.
"If our economists are correct, there is about 10 per cent undervaluation of ringgit possibly caused by sentiments," he told reporters at The Economist magazine South-East Asia Summit here today.
At 9.30 am, the ringgit was quoted at 4.0980/1030 against the 4.1040/1090 at the close yesterday.
Nazir said like other economic crises, it was crucial to diagnose the situation properly so they could be handled with the right policy measures.
"I'm pleased that Prime Minister Datuk Seri Najib Razak and the Ministry of Finance are going through the process of engaging the community, particularly analysts and businessmen, to get their perspectives of the economic situation," he said.
He said by doing so, the prime minister and the ministry would get a better view of the situation, make the right assessment and come out with sensible responses.
On Aug 13, Najib, in his blog, gave four reasons for the weakening ringgit -- excessive political speculations; yuan devaluation; anticipated US interest rate increase; and, fall in comodity prices.
He, however, gave his assurance the government would do its best to manage the situation in order to stabilise the country's economy.
The summit, held in conjunction with the ASEAN Economic Minister meeting, examines the region's march towards becoming an economic community by year-end. - BERNAMA
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NAZIR RAZAK IS CORRECT!
IF YOU CHECK BIG MAC INDEX YOU WILL FIND THAT BUYING A BIG MAC BURGER IN MALAYSIA IS AMONG THE CHEAPEST IN THE WHOLE WORLD.
SO THE MALAYSIAN RINGGIT IS NOW DRIVEN BY SENTIMENT AND NOT BY FUNDAMENTAL AT ALL.
THE BEST CURRENCY TO BUY NOW IS THE RINGGIT!
2015-08-21 01:38
Malaysia is heading to a recession in 2016. The end of the ringgit ,stock & bonds
2015-08-21 09:56
3.7? don't make me laugh...
our country already lost its reputation.
2015-08-21 09:57
Ya, especially got gangster lke ali babadoom, you are very soon to doom. maybe at 5.5 very soon.
2015-08-21 10:44
our mkt now was supported by local institutions since 18th of august.. a day after najib meet 14 economist in closed door meeting. these few days when mkt fall sure gt institution come support the index from free falling as we can see on 18th, 20th and 21st (this morning)..
http://www.thestar.com.my/Business/Business-News/2015/08/20/Najib-meets-economists-to-get-their-feedback/?style=biz
2015-08-21 11:43
currently, local institution is supporting... for low risk takers, better close position... dunknw when the big wave is coming... and we can likely feel it already...
2015-08-21 13:41
My Singapore money changer now do not want to exchange MYR. Keep it to yourself.
2015-08-24 11:14
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he should probably just shut up and focus on CIMB. share has taken a hammering this year.
2015-08-20 19:56