Cowboy Caleb the liberal arts, grown-up stuff & random mischief

Our aim to have more watermelons

Earlier in the evening, China abandoned its decade-old peg against the dollar and revalued the yuan by 2.1%, switching to a managed float based on a basket of foreign currencies.

Within the hour, Bank Negara Malaysia also announced that the ringgit’s RM3.80 peg against the U.S. dollar imposed in Sept 1, 1998 has been scrapped with immediate effect and will also operate by a managed float against a basket of currencies.

This impacts people like me directly, as the bulk of my investments and liabilities are currently in Malaysia. A stronger Ringgit does not bode well for me, because I get less for my SGD. Jeff Ooi has the news. An interesting explanation by way of analogy can be found at Emperor Kuzco.

Malaysian bloggers like LiewCF and Yvonne are crying bloody murder because this reduces their Adsense earnings.

In the meantime, I am moving to reduce my portfolio in Malaysia, just in case.

Not sure what your financial situation actually is, but I would have thought that the appreciation of the ringgit would be good for your existing Malaysia portfolio.