{"id":1768,"date":"2008-09-05T23:56:31","date_gmt":"2008-09-05T15:56:31","guid":{"rendered":"http:\/\/maddruid.com\/?p=1768"},"modified":"2009-02-28T23:32:57","modified_gmt":"2009-02-28T15:32:57","slug":"1765-of-selling-dollar-and-maintaing-the-opr","status":"publish","type":"post","link":"https:\/\/maddruid.com\/?p=1768","title":{"rendered":"[1765] Of why would the Bank Negara defend the ringgit?"},"content":{"rendered":"<p>There is a suspicion that the Bank Negara bought a lot of ringgit today by selling the US dollar in order to defend the ringgit from further depreciation vis-a-vis the dollar.<\/p>\n<blockquote><p>KUALA LUMPUR, Sept 5 (Reuters) &#8211; The Malaysian central bank was suspected of selling dollars on Friday, joining counterparts in South Korea, Indonesia and the Philippines in defending their weakening currencies. [<em><a href=\"http:\/\/www.forbes.com\/afxnewslimited\/feeds\/afx\/2008\/09\/04\/afx5391808.html\" target=\"_blank\">Malaysia c.bank sells dlrs to defend ringgit-traders<\/a><\/em>. Reuters via Forbes. September 5 2008]<\/p><\/blockquote>\n<p>Why would the Bank Negara want to defend the ringgit?<\/p>\n<p>Is it due to nationalism?\u00a0 Is it an order from Putrajaya? Is it to mitigate the more expensive import priced in dollar? Is it to fight more expensive crude oil due to strengthening dollar vis-a-vis the ringgit? Is it due to too much foreign-denominated debt, just like in what happened in 1997 in Thailand?<\/p>\n<p>The simultaneous sales by four different central banks also raise question.<\/p>\n<p>Is there a collusion by the four banks to stop the US dollar march upward? If the motive is so, would such collusion garner enough influence to affect the US dollar?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a suspicion that the Bank Negara bought a lot of ringgit today by selling the US dollar in order to defend the ringgit from further depreciation vis-a-vis the dollar. KUALA LUMPUR, Sept 5 (Reuters) &#8211; The Malaysian central bank was suspected of selling dollars on Friday, joining counterparts in South Korea, Indonesia and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[151],"class_list":["post-1768","post","type-post","status-publish","format-standard","hentry","category-economics","tag-malaysian-ringgit"],"_links":{"self":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/1768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1768"}],"version-history":[{"count":2,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/1768\/revisions"}],"predecessor-version":[{"id":2509,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/1768\/revisions\/2509"}],"wp:attachment":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}