Tuesday, June 26, 2018

Mahathir studying currency change

Here's a SHOCKER for you!!!

In 2007 Bank Negara announced the demonetisation of the RM500 and RM1,000 denomination currency notes, that these high value notes ceased to be legal tender effective from 1 July 1999. Needless to say, those with such unexplained (unaccountable) high value notes, who dared not return their crates of such notes to the authority for a refund, lost billions.

T'was said the volume of RM500 and RM1,000 notes in circulation before demonetisation stood at a combined value of RM5.52 billion.

India did the same thing in 2016 to its ₹500 and ₹1000 banknotes. The government's aim was to paralyse the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. But by a year's end, 99% of the banned currency had been deposited in banks proving the government's suspicion was wrong and its demonetisation a failure.

But alas, the sudden nature of the announcement and the prolonged cash shortages in the weeks that followed created significant disruption throughout the economy, threatening economic output and creating untold hardships for the poorer segment of society.

Today, Malaysiakini reportedMahathir said his administration had the option of pegging the ringgit again or "changing currencies", but these options needs to be studied. 

Mahathir had imposed currency controls in 1998 during the Asian Financial Crisis to peg the ringgit at RM3.80 to the US dollar. It was removed in July 2005 by the Abdullah Ahmad Badawi administration.

Currently, the ringgit is trading at RM4.023 to the US dollar.

On "changing currencies", Mahathir did not provide details but suggested that it was something that required detailed study.

"It's not an easy thing because when you want to replace currency, you must know how much currency is in circulation... because we have to replace what is in circulation and that is a very big amount.

"If you were to replace, you need to print huge amounts of paper money... but that is not a decision that one makes lightly. You have to study the effect on the economy," he said.

How will Mahathir's intent affect you? If you're a dedak makan-er like some of my blog visitors, wakakaka, don't accept very high value currency as they may turn into high value toilet paper, wakakaka.

I have half a dozen of these:

Wakakaka - enough for my char koay teow.


  1. Why KT say "shocker for YOU", not "shocker for US".
    Because KT not one of US, already convert all assets to foreign currency? Tsk...tsk...tsk...

    I am a loyal Malaysian, all my assets in Ringgit and in Malaysia.
    UMNO say Hebat Negaraku but they keep their cash in 26 currencies.

  2. Wah.....kaytee can forsee that najib would cabut....hence its a fucking good thing to demonetise it....

    Cheebye kaytee......hahaahhaahah

  3. LGE made one phone call to VT and issue solved. New Malaysia.

    For ECRL sub-contractor works, Malaysia will push for more local company participation, more local workers and under open tender basis only.

    Berjaya Corporation Bhd executive chairman Vincent Tan Chee Yioun, who surfaced as a substantial shareholder of T7 Global Bhd last month, plans to divest his entire stake in the offshore oilfield service provider.

    The tycoon disclosed this today in a statement, which was issued to clarify his position and to refute any allegations, or suggestions of impropriety, or cronyism on the part of the government and Prime Minister Dr Mahathir Mohamad.

    The clarification was in response to several news reports and social media articles regarding his recent purchase of 21 million shares, comprising a 5.04% stake, in T7 Global.

    “These news reports are mischievous and appear to imply a sinister link between my acquisition of a substantial stake in T7 Global and the decision of the Pakatan Harapan government not to cancel the East Coast Rail Link (ECRL) project, despite earlier reports to the contrary.

  4. Poor Ktemoc has started hearing voices from thin air since May 10, 2018.

    Please Have pity on him...

  5. LGE was having lunch today at MoF with Tony Pua and Ong Kian Meng. (LGE kena belanja because the two work for free, no gaji). He nearly choked on his wantan mee and immediately called TDM on his HP.

    LGE: Tun, what is the meaning of your comments to Asia News Channel.

    TDM: Apa hal Guanee. Saya sedang sibuk ni. Sikit masa lagi nak nek nek sekejap.

    LGE: Tun, you mentioned changing currency. How can you make this comment without consulting your Finance Minister.

    TDM: Ohh....so sorry Guanee. I terlupa. I thought I was still Finance Minister, macam dulu. Maklum lah, akal slow sikit. Bila you tua you faham lah.

    LGE: So you won't change our Ringgit to USD, Yuan or SGD or anything like that?

    TDM: No lah, you are Finance Minister. You decide.

    LGE: OK thanks Toonsee. BTW, Cabinet dah selesai?

    TDM: Dah. Agong pun dah setuju. Saya bagi you Deputy hebat. Amiruddin Hamzah.

    LGE: Siapa? Tony Pua tak boleh? Atau Ong Kian Meng? Oxford dan Cambridge lah.

    TDM: Tak boleh MoF macam pejabat DAP. Kena ada Check and Balance. Inklusif. Amiruddin tu PAS masuk Bersatu.

    LGE: Oh ya. Check and Balance. Macam Dacing, only Better. Roger that.

    1. I am so happy that kaytee still laughing even if he is purgatory

      Something to do with kaytee refusal to come clean on his credential

      Its truly an issue because accountability must be demanded from anyone especially kaytee mock.

      Time to protest in front of susab loone to demand of release of all kaytee mock particulars

  6. actually, money is made out of cotton, some are plastic but never paper. i guess mahathir was right, there are many un-educated malaysians... and he is one of them.

    1. And you? Are you kaytee? Heard kaytee an aneh lei

    2. Its still "Paper" money lah.

      Cotton happens to be the source of the fibre, because it is more durable than wood firbre, especially under semi-damp conditions of human handling.
      It's still paper.

      I know plenty of you dislike Mahathir, but pluueze do not manufacture fake science just to attack him.

  7. Currency, in a loose sense, need not be notes and coins. It could be a commodity that both debtor and creditor agree to use as settlement. Malaysia can export oil palm, Oil & Gas to China. Kalau tak cukup tambah dengan Musang King.

    In the meantime TDM has asked LGE to study carefully the ECRL and Gas Pipeline contracts with China. He is trying to find the clause that says China agrees to import US$2 TRILLION from Malaysia over 5 years. Najib said China Leader Li Keqiang committed to this, so the clause must be there. Najib can help this search via Facebook.