Yah thanks but I was thinking in a general manner. Cos if take bank loan, next time I will also have to find a way to transfer large sums of money to the account there.
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Exchange Rates for RM
- Thread starter crystal_tiong
- Start date
Yah thanks but I was thinking in a general manner. Cos if take bank loan, next time I will also have to find a way to transfer large sums of money to the account there.
change to another MC like raffles acrade.
MYR is strengthening against SGD. Today is 2.555 (Cash).
I didn't know about this until someone informed me in this forum too. Before that, I had been banking in a few big sums at a My CIMB branch; the biggest being RM50k. No one at the counter asked me any questions.
I supposed it is because my current account is linked to my home loan account that no one asked.
Online transfer wise, CIMB allowed max of RM20k a day, which I have done a few times too.
Yup, Arcade's rate is 2.55623.
The Big Mac index: http://www.economist.com/content/big-mac-index
Global exchange rates, to go
THE Big Mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries. For example, the average price of a Big Mac in America in July 2013 was $4.56; in China it was only $2.61 at market exchange rates. So the "raw" Big Mac index says that the yuan was undervalued by 43% at that time.
Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of at least 20 academic studies. For those who take their fast food more seriously, we have also calculated a gourmet version of the index.
This adjusted index addresses the criticism that you would expect average burger prices to be cheaper in poor countries than in rich ones because labour costs are lower. PPP signals where exchange rates should be heading in the long run, as a country like China gets richer, but it says little about today's equilibrium rate. The relationship between prices and GDP per person may be a better guide to the current fair value of a currency. The adjusted index uses the “line of best fit” between Big Mac prices and GDP per person for 48 countries (plus the euro area). The difference between the price predicted by the red line for each country, given its income per person, and its actual price gives a supersized measure of currency under- and over-valuation.
Global exchange rates, to go
THE Big Mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries. For example, the average price of a Big Mac in America in July 2013 was $4.56; in China it was only $2.61 at market exchange rates. So the "raw" Big Mac index says that the yuan was undervalued by 43% at that time.
Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of at least 20 academic studies. For those who take their fast food more seriously, we have also calculated a gourmet version of the index.
This adjusted index addresses the criticism that you would expect average burger prices to be cheaper in poor countries than in rich ones because labour costs are lower. PPP signals where exchange rates should be heading in the long run, as a country like China gets richer, but it says little about today's equilibrium rate. The relationship between prices and GDP per person may be a better guide to the current fair value of a currency. The adjusted index uses the “line of best fit” between Big Mac prices and GDP per person for 48 countries (plus the euro area). The difference between the price predicted by the red line for each country, given its income per person, and its actual price gives a supersized measure of currency under- and over-valuation.
I studied this in my 3rd year of university. For most ppl, PPP is quite hard to understand well. but when understood, PPP is not relevant to everyday Joes like us, unless you have a 10-20 year investment horizon.
For example, the US has been bitching abt the RMB being undervalued for decades. But it is only recently (that's 20 years later), that the RMB is deemed as fair value. Of cos, we all know the currency was kept artificially low, but what can the US do? also Lan Lan One Piece of Meat (read in Hokkien). So what if the PPP says that RMB was undervalued? Few ppl has more money than the Bank of China.
A smarter investor would have gotten better returns in equities and properties instead of holding RMB (cash). also, by some measures, the MYR is also undervalued. would any of you wanna go long on the MYR? I say forget abt the PPP. Focus instead on the SYT Index if you wanna make money.
For example, the US has been bitching abt the RMB being undervalued for decades. But it is only recently (that's 20 years later), that the RMB is deemed as fair value. Of cos, we all know the currency was kept artificially low, but what can the US do? also Lan Lan One Piece of Meat (read in Hokkien). So what if the PPP says that RMB was undervalued? Few ppl has more money than the Bank of China.
A smarter investor would have gotten better returns in equities and properties instead of holding RMB (cash). also, by some measures, the MYR is also undervalued. would any of you wanna go long on the MYR? I say forget abt the PPP. Focus instead on the SYT Index if you wanna make money.
U forgot SPRs. Definitely good news for them too! Best of both worlds.
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Anyone got any crystal ball to forecast whether RM will strengthen tomorrow/coming week due to what some people speculate will be tough measures being implemented in tomorrow's budget that is targeted to improve M'sia 's current account position. If so, then better change today 
Anyone got any crystal ball to forecast whether RM will strengthen tomorrow/coming week due to what some people speculate will be tough measures being implemented in tomorrow's budget that is targeted to improve M'sia 's current account position. If so, then better change today
Today, I was at Raffles City Shopping Centre, the MC is selling at 2.52. Has MY strenghten or it is just the MC offer?
cimb 2.5214
Malaysian Ringgit is improving against SGD.
Could be due to the budget announcement.
Yes, hopefully with the impending improvement with their fiscal policies, MYR is set for near-term recovery. The consolidation of Najib's position should also be a factor.
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