Jiuhu boleh moment - Capital Control

[k1976]

OpinionColumnist

Malaysia’s Capital Control Experiment Resonates 25 Years On​

Mahathir’s shock move to stanch outflows changed the way the world thinks about maps and money.

Gift this article

Unorthodox moves.
Photographer: Kiyoshi Ota
By Daniel Moss
September 4, 2023 at 6:00 AM GMT+8


One of the most seminal moments in the Asian financial crisis transpired in a country that scraped through without a bailout — courtesy of economic heresy.

This particular drama didn’t pass into the history books easily. In the quarter of a century since Malaysian capital controls shocked global finance, brakes on how money shows up and leaves have moved closer to respectability.

The challenges emerging markets face from massive capital flows, sometimes driven by events far beyond their shores, haven't dissipated.

While few see Malaysia as a precise template, the crucible of 1998 nudged thinking on how to respond to rapid and disruptive shifts in the $7.5 trillion-a-day foreign-exchange market.


Upheavals in 2008, 2013 and 2020 also diminished opposition to at least some management of disruptive flows.

 

[k1976]

https://documents.worldbank.org/en/...546811468777284508/malaysian-capital-controls

A pdf document from world bank for your reading pleasure

 

[k1976]

https://www.elibrary.imf.org/display/book/9781589060470/ch05.xml

Jiuhu Capital Control also documented in IMF library

 

[k1976]

https://www.reuters.com/markets/asi...pital-controls-ringgit-re-pegging-2022-09-23/

Few moons ago... Jiuhu say bo more capital control

 

[k1976]

https://asia.nikkei.com/Business/Ma...no-plans-for-dollar-peg-says-finance-minister

 

[k1976]

KUALA LUMPUR (Reuters) -- Malaysia's finance ministry said on Tuesday it would implement structural policies aimed at boosting fund inflows and foreign investment that can support the ringgit, reiterating it has no plans to peg the currency to the U.S. dollar.

The ringgit has fallen 5.4% so far this year and on Tuesday was trading at 4.6380 to the dollar, a fresh seven-month low, and close to its weakest levels since January 1998.

In 1998, during the Asian financial crisis, Malaysia imposed capital controls and pegged the ringgit at 3.8000 to the dollar, maintaining the peg until 2005.

It last year said it would not do so again, citing the risk of capital outflows.

Malaysia risked losing its monetary policy independence, and may need to increase its interest rates to match high borrowing costs in the United States if it re-pegged the currency, Deputy Finance Minister Ahmad Maslan told the Senate on Tuesday.

 

[k1976]

The people are already struggling [with the current interest rate level]," he said.

Malaysia's central bank, Bank Negara Malaysia (BNM), unexpectedly raised its benchmark interest rate last month, citing a need to manage persistent inflation amid robust domestic demand.

The government would instead focus on improving Malaysia's investment climate and productivity, as well as implement fiscal sustainability measures that can attract quality foreign investment, Ahmad said.

BNM would also look to reduce volatility in the foreign exchange market, including through the use of hedging instruments, he said.

The central bank said this month Malaysia needed structural reforms to strengthen growth prospects and encourage more investment opportunities to boost the ringgit.

 

[millim6868]

Lol,sg already happening,

 

[syed putra]

Jiu hu inflation controlled by subsidies which is killing gomen expenses and making its currency weak.
Hiking interest rates will cause businesses and home owners to suffer.

 

[k1976]

Jiu hu inflation controlled by subsidies which is killing gomen expenses and making its currency weak.
Hiking interest rates will cause businesses and home owners to suffer.

Maybe Gold Dinar coming soon?

 

[mojito]

Jiu hu inflation controlled by subsidies which is killing gomen expenses and making its currency weak.
Hiking interest rates will cause businesses and home owners to suffer.

Inflation is just a number. Nothing like speaking softly and carrying a big stick. Evil Jew Soros never bothered matland ever a gain.

 

[k1976]

Inflation is just a number. Nothing like speaking softly and carrying a big stick. Evil Jew Soros never bothered matland ever a gain.

Jiuhu has very deep rooted klepocracy culture

 

[syed putra]

Jiuhu has very deep rooted klepocracy culture

Plus inept leaders. Most never worked in private sector before. From current crop, only one minister has private sector exposure.

 

[k1976]

Plus inept leaders. Most never worked in private sector before. From current crop, only one minister has private sector exposure.

That why Malaysia also say Obeient ish better than smart....can be control and physco kore easily

 

[syed putra]

And dontch forget, CLOB. Daim and dr M made a fortune on this I would think. But nobody lodged report on its illegality.