Ringgit De-Peg: Get the Odds!

The big news of the day is the ringgit un-peg. Or de-peg. Or no-peg. Read it here.

So what’s the new exchange rate gonna be?

It used to be this:

USD$1 = RM3.80

So what’s the new, ‘stable’ rate going to be like?

The talk on the street is somewhere between RM3.20 to RM4.00.

According to our central bank:

Since Jan 1, the ringgit has appreciated by 11.3% against the euro, 7.29% against the yen, 9.82% versus the pound sterling, 6.35% against the baht and 1.5% compared with the Singapore dollar.

So if we calculate using my RM9.90 Snoopy calculator I bought at the SS2 pasar malam:

Based on the rise against the euro, the new value should be RM3.41;
Based on the rise against the yen, the new value should be RM3.54;
Based on the rise against the pound sterling, the new value should be RM3.57;
Based on the rise against the euro, the new value should be RM3.74.

(Feel free to make fun Simon’s understanding of the money market. He failed his SRP)


So, feeling confused, Simon called his bookie, Ah Fatt. (Not to be confused with Ah Keong, his mechanic or Ah Long, his friendly loan-shark)


According to Ah Fatt, there is already a betting odds are already out! The odds are as follows:


(Based on exchange rate of USD$1 on September 1st, 2005)


Below RM3.00 = 25 to 1
RM3.00 to RM3.19 = 10 to 1
RM3.20 to RM3.49 = 5 to 1
RM3.50 to 3.79 = 2 to 1
Maintain at RM3.80 = 7 to 1
More than RM3.81 = 15 to 1


Special buy :
RM3.88 = 8 to 1


(Minimum bet RM100, please check odds daily before booking. Money up front, Maybank2u)