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Sakmongkol ak 47

Monday, 22 September 2008

To Peg or Not to Peg

Najib’s first public statement as finance minister is to say Malaysia will not re peg the Ringgit to the dollar. We will trust the market forces, says the finance minister.

You mark my words, in the days to come, Najib will be forced to eat humble pie. He will then peg the Ringgit to the Dollar eschewing his newly found trust in the market.

Sakmongkol then asks, if he trust the market to determine the real value of the Ringgit, is not his position the same as that wanted to be taken by Anwar Ibrahim? When Anwar was the finance minister, he was a messiah of the unfettered market forces. In other words, the very same prescriptions that the IMF wants Malaysia to do.

If Najib persists in studiously following the market, he will be our bravest finance minister. The USA is already starting to implement some Mahathir like measures to save many of their own financial institutions that have folded.

And here, our new finance minister, suffering the hangovers of 15 years of shelling in the trenches of MINDEF is only conversant with C4-ing the economy.

Sakmongkol hopes, he will not blow the economy to pieces. Sakmongkol also hopes, that his brother’s ( CEO of CIMB) prognosis that Malaysia can thank her lucky stars because she is insulated will also proved true.


A Voice 23 September 2008 at 00:22  


The 1997 peg is to stem capital flight and to punish athe hot money.

Getting FDI then is not a problem

Current scenario is that we badly need FDI. Capital flight from domestic investment abroad.

Maybe he can't say yes yet. Or there will be pandemonium.

Last minute pehaps ...

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