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29-01-2015, 03:52 PM
(29-01-2015, 09:37 AM)edragon Wrote: I think bilateral Trade will be affected adversely if the slope is not eased as the biggest trading partner is severely affected by the oil price and the exchange between the Sing Dollar and Ringgit appreciated too steeply against the band. The MAS must have no other option but take this "unscheduled" "surprised" easing.
This must be a last resort as big investors may switch out with this minor shock.
But but but...... I suspect that the bulk of Sing and Malaysia trade are in USD wor....
e.g. at least the electronics industry typically price products in USD.My gut feel is that this is a pre-preemptive step against speculative pressure surfacing a la the Swiss Franc.