Current Location:Home||The absolute! This central bank speculation foreign exchange huge losses of $10 billion known as the worst level of manipulation in history

The absolute! This central bank speculation foreign exchange huge losses of $10 billion known as the worst level of manipulation in history

{}Posted in2023/2/26 3:48:40 | 4Browse

90s Ch best forex rebate companya a ban on forexrebatecommission rebatesforexbroker margin trading, closing the door to domestic margin business and the same period, our neighbors in Malaysia fxrebate cashback forex due to foreign exchange trading caused a fishy This is not a common change in national policy, but a story of adventure and ambition 1992 to 1994, Bank Negara Malaysia for speculation in foreign exchange losses of tens of billions of ringgit, became the largest foreign exchange trading losses in the history of the Bank Negara scandal so far, this is still an unsolved case things over 25 years later, the Malaysian government set up a Royal Commission of Inquiry (RoyalCommissionofInquiry) to thoroughly investigate the case of huge losses in the year speculation in foreign exchange then Finance Minister and Deputy Prime Minister Anwar has confirmed bestforexrebatecompany the country lost a total of 15 billion to 30 billion ringgit in foreign exchange transactions that year, about 10 billion U.S. dollars or so The then Finance Minister and Deputy Prime Minister Anwar However, the investigation is still hampered by many key witnesses claiming not to remember, not to know and not to be informed, refusing to talk about the scandal back then and even the central banks vice president back then, Lin Xiyan said that when speculating in foreign exchange losses that year The central bank did not even notify the then Prime Minister Mahathir, it is not clear whether there are others to inform Mahathir The impact of this incident to deep, the Malaysian government to this day is not fully cleared of what happened in the end that year? And FinanceWord HuiZhong together to review this history it Malaysias central bank ambitions Since 1989, Malaysias central bank in the global foreign exchange transactions become very active, the purpose is mainly to stabilize the national currency ringgit Reuters (Reuter) even had in a report that Malaysias central bank is a few years on the foreign exchange trading arena dominant force  In 1991, Reuter again wrote this description: In the past 2 years, Malaysias central bank has continued to increase the volume of transactions, this year it has counted on the size of the industry recognized ‘mega-transactions’......  Typically, Bank Negara Malaysia traded $50 million per lot, while the market average is $5 million - $10 million per lot in Europe and New York, Bank Negara Malaysia may trade with 6 large banks respectively A trader said that Bank Negara Malaysias only competitor should be large Japanese funds different is that these large Japanese funds up to into the market once or twice a year, while Bank Negara Malaysia traded hundreds of millions of dollars every day By 1994, Bank Negara Malaysias largest exposure to the foreign exchange market had been as high as 270 billion ringgit, which was three times the countrys GDP that year and more than five times the countrys foreign exchange reserves!  With the increasing volume of transactions, Malaysias central bank is no longer to stabilize the global financial markets, but constantly to ultra-high trading volume impact on the fragile foreign exchange market, resulting in exchange rate fluctuations for their own profit 1992 is the most colorful year in the history of foreign exchange is George Soros (GeorgeSoros) sniping the pound, the Bank of England, causing the United Kingdom to withdraw from the European exchange rate system. So that the British exit from the European exchange rate system he personally profit of $ 1 billion  and Soros, like Bank Negara Malaysia is also very concerned about the pound trade, it bought a large number of pound positions, that the United Kingdom will maintain the European exchange rate system, and predicted that the pound will appreciate  the results speak for themselves this campaign let Bank Negara Malaysia lost nearly $ 3.6 billion in 1993, Bank Negara Malaysia in In 1993, Bank Negara Malaysia lost another $2.2 billion in the currency market, nearly bankrupt in 1994, and eventually accepted help from the Malaysian Ministry of Finance to get out of trouble These losses were all denominated in U.S. dollars, not ringgit After the central banks foreign exchange trading scandal, a large number of relevant personnel resigned, while the central bank reported that only a loss of 9 billion ringgit after the government formed a task force to investigate, however, the investigation to the information is very limited The task force said that the actual amount of losses far exceeded the amount announced Demzainuddin, who served as finance minister from 1984 to 1991, strongly accused a group of people involved in speculation in the foreign exchange market in 1994 of playing with fire he said: The central bank should never play with fire, especially not in the very risky or lossy speculative market he said: The central bank should never play with fire, especially not in the risky or lossy speculative market. The central bank should never play with fire, especially not in the speculative market where the risk or loss is very high In the capital market, consider that you can not afford to lose, such thinking is inherently problematic If you make a profit, there must be others in the loss If you have limited funds, then do not participate in it This is different from the pursuit of long-term investment If you decide to engage in speculative activities, then make sure you are ready to lose yourself The central bank is responsible for the heavy responsibility, and speculative adventure The activities are a danger zone never play with fire The lessons of history are still there, and perhaps that is why Malaysian officials have always abhorred foreign exchange speculation  Former Malaysian Prime Minister Mahathir Mohamad, now 91, still holds a very hostile attitude towards foreign exchange trading He has been the Prime Minister of Malaysia since 1981 He has been prime minister of Malaysia for a total of 21 years and the Bank Negara foreign exchange trading scandal has been the biggest challenge to his record in office, apart from the financial crisis Conclusion Bank Negara rarely mentions these activities in the international exchange market publicly, but its moves beyond protecting its economy are beginning to be captured But, as one American banker put it, in the un The foreign exchange market is not regulated by the central government, no one can step forward to blame, there is no police and no criminals here ultimately let Malaysias central bank to swallow the bitter fruit is the verdict from the market Currently, the Malaysian government to re-examine the past 25 years of the central bank speculation case, responsible for a thorough investigation of Malaysias central bank speculation in foreign exchange suffered a loss of $10 billion Royal Commission hearings officially kicked off in August this year Bank Negara officials said the central bank or law enforcement authorities have not launched an investigation into the matter, the reason is that the loss is too large, the government is afraid that once the public, the then Prime Minister Mahathir Mohamad, the Finance Minister or the entire cabinet are to blame, must be responsible for this incident
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