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Foreign exchange reserves Malaysia Less US $ 100 billion.
The amount of foreign exchange reserves Malaysia set out below 100 billion dollars at a time when the country needs a buffer when investor confidence over economic decline of the country.
The value of stocks that are at low levels as the failure of the 2008 credit past and the Asian financial crisis of 1997-98 and then does not help at all. This resulted in a decline in the venture pushes the value of the ringgit, which is currently located at a point such as the 1998 3.8 per u.s. dollar earlier this month and into the lowest level in 16 years. Default risk Malaysia increased by 40 basis points above the Thailand and the Philippines when its price plummeting dollar bonds for corporations that are experiencing the problem of investment and also for producers of oil in the country.
The pressure is getting bigger because the ringgit be currency with the worst achievements in Asia after PRIME MINISTER Najib Razak dismissed his Deputy as part of a cabinet reshuffle after he issued an opinion about the debt ridden 1Malaysia Development Bhd (1MDB). Also get rid of one of the four Attorney General of Malaysia who helped the investigation report of the Wall Street Journal that mentions the funds associated with flows into 1MDB accounts PM Najib.
"The decrease under the level of 100 billion dollars would probably mess up the sentiment that is more prone to the front," said Nizam Idris fixed income strategist of Macquarie Bank Ltd., both among the top in the list of the Bloomberg estimate ringgit with accurate four last quarter to June. "The question is how quickly the flow of capital flows that we suddenly get an intensive political story," he said.
A decrease to below 100 billion dollars will increase concerns about the capital in vain, said Vishnu Varathan, an economist with Mizuho Bank Ltd., adding that Malaysia's central bank hesitant to determine the limit of ringgit. "There is political risk, coupled with the State of the oil market and the strengthening of the dollar, could we call the current state as the perfect storm," he said. https://www.mql5.com/en/signals/120434
