Foreign exchange executives in malaysia see oil prices as key issue impacting the ringgit bloomberg l.p. binary translation


Kuala Lumpur, October 4, 2016 — Foreign Exchange (FX) executives in Malaysia view oil prices as the primary macro issue affecting the Malaysia ringgit (MYR or ringgit), according to the results of a Bloomberg survey released today ft future of marketing summit 2016. U.S. rate hikes represent a secondary challenge, those polled said.

The oil, gas and energy sector accounts for approximately a fifth of Malaysia’s GDP, and movements in the ringgit have largely tracked that of oil price fluctuations year-to-date (see chart below).

The findings come from a Bloomberg FX16 symposium held in Kuala Lumpur where Dato’ Lee Kok Kwan, President of the Financial Markets Association of Malaysia, was the keynote speaker usd to inr conversion rate. More than 180 FX bankers, traders, brokers and corporate treasurers convened to discuss the challenges and opportunities in the FX market.

FX regulation, market transparency, liquidity and volatility, and the rise of electronic trading were highlighted in a panel featuring top executives from Macquarie Bank and CIMB Investment Bank.

The poll also showed that 50 percent of respondents expect the Japanese yen to be the best performing Asian currency against the US dollar through year end us to rmb exchange rate. Approximately 30 percent are confident that the Singapore dollar will outperform Asian currencies but very few are expecting a strong showing against the US dollar for the currencies of China (2 percent), Indonesia (7 percent) and Malaysia (4 percent).

71 percent of respondents expect the ringgit to hold stable between MYR 4.00 and MYR 4.20 against the US dollar, which has recovered significantly from the high of MYR 4.46 in September 2015 exchange rate pound to us dollar. However, the majority (53 percent) is “not very comfortable” that the country has sufficient foreign reserves to cushion against external shocks to the currency

Half of respondents (52 percent) expect Bank Negara to cut the benchmark interest rate, whilst most of the rest (45 percent) expect rates to be maintained at 3 percent in spite of the decision by the central bank to stand pat earlier last month.

Over 40 percent of those surveyed see hedging against market volatility as the biggest FX challenge for firms in Malaysia; whilst one third say managing currency exposure is the greatest challenge fx rate cad usd. When asked about the major risk to economic growth, opinions varied – 34 percent say that domestic political instability is the greatest risk and one quarter see it coming from weak oil demand dollar rupee exchange rate today. Interestingly, only 10 percent see slowing China growth as the major hindrance to growth in Malaysia’s economy.

“We are delighted to convene the FX community to discuss the robust and growing foreign exchange market in Malaysia,” said Grant Coombe, Bloomberg’s APAC FX Sales Strategy Lead. “Our strategy is to continue partnering with the community to develop solutions that will enhance the workflow and provide greater transparency to financial markets binary code to english. One example is the recently launched tri-party ticketing system, which has been well received by Malaysia’s interbank community so far.”

Bloomberg’s tri-party ticketing system allows foreign exchange brokers in Malaysia to have complete visibility of trades which are captured electronically with confirmations sent to counterparties and trade reporting authorities in real-time malaysian ringgit to usd history. This is a departure from the previous process of brokers having to manually confirm each trade with individual parties involved aud to usd graph. For more information on Bloomberg’s Foreign Exchange capabilities, please visit

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