The latest reserves position shows a RM2 billion increase over the last two weeks, indicating the pace of intervention has slowed compared to the first half of October:
As you can see from the MYR-USD exchange rate, there’s no obvious correlation between changes in reserves and the USD exchange rate after the capital flight episode in late 2008:
Bottom-line: BNM has a soft line in the sand at about 3.08 which says “do not cross…for now”. I’d expect that line to be crossed by the end of the year.
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