Saturday, October 27, 2007

Ringgit To Hit 3.00 by 1st Quarter 2008?

Bernama has reported that the ringgit has a high probability of hitting a 3.00 mark against the U.S dollar by the first quarter of 2008. The number one reason is likely because of the credit crunch at the U.S and the dollar has reached the record low against the euro.

The fact of the ringgit is still languishing behind the Sing dollar still remains a point unacceptable. If the MAS - Monetary Authority of Singapore puts a heavy intervention on the strength of the currency, there is still a chance of the ringgit to reduce its undervalue, currently at 21%.

But then ex-political secretary for Mahathir, Matthias Chang has warned that the U.S dollar is likely to end up with zero value, in other words holding paper money in the next few years, with the possibility of financial chaos to begin somewhere around 2009. This has been predicted by many financial experts particularly Clemen Chiang.

From that, it is a domino effect, it leads to chaos across the world.

Has Malaysia been preparing for the scenario, the worst case scenario? From the interviews with the Central Bank, there is but I find that there is more work cut out to prepare for this scenario, that is unless the Bedol administration is willing to accept the fact and stop their political blickering.

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