Here Is Some Advise To All Ahli Politik : Do Not Make Wild Horse Predictions

Here is some really silly news. This is coming from a head of State, a Prime Minister. Thus type of news is meant for the unthinking, those who are even less clever than him :

IPOH (March 15): ringgit to surge to 3.80 against US dollar in near term, Najib said

his optimism emanated from positive indicators like strong economic performance

country's export value of more than RM80b in first quarter of this year.

currency y'day dropped slightly to 3.90 from 3.89 (against the US dollar). 

InsyaAllah, in near term it may rise to 3.80.

ours is among best performing currencies 

several months ago ringgit weakened to 4.49. 

But it will surge to 3.80 soon," he said 

My comments :  The Ringgit is not the best performing. The Ringgit is painfully trying to crawl back to regain the huge losses it has suffered under your mismanagement. Look at this chart :

The Ringgit has weakened again to RM3.92 to the US Dollar today. Look at the chart to the right.  The Ringgit was at RM3.00 to the US Dollar in early 2015.

Then the GST kicked in. Prices shot up,  business volumes started decreasing, the domestic businesses have been slow since then.  Oil prices also dropped and our Dollar earnings also dropped.  Less demand for our Ringgit and it went down.  

What we are seeing now is a weak Ringgit fueling a higher export volume. When our Ringgit jatuh, our export barang becomes cheaper for foreigners. So they will buy more from us. This is what the PM could not understand when that foreign reporter asked him if the weak Ringgit will boost the export sector. 

More exports of course will also strengthen the Ringgit which is what we are seeing now.  But the domestic economy is weak. The higher exports may not mean much to overall growth if the domestic economy remains weak.  What is really happening is we have to work harder to earn less.

Someone should tell the duck never to predict  currency rates, never try to predict the Stock Market, tomorrow's gold price or even the price of oil. 

If you are working in Bank Negara's forex department then you may be able to 'position' the Ringgit for tomorrow. But those days are over. It cost plenty didnt it?

So stay away from all these wild horse predictions.