Zeti-led BNM: RM1.2 trillion in illicit outflows in 10 years
“Former Bank Negara Malaysia (BNM) Governor Zeti Akhtar Aziz has been appointed as a member of the international advisory panel of Asian Infrastructure Investment Bank (AIIB).
Zeti, ranked the world’s best central bank chief in 2009 by Global Finance magazine, retired in April after 16 years of being at the helm of BNM.” - Bernama
We, at No News Is Bad News, would like to ask whether Zeti is really world’s best central bank or has she been over rated?
Well, under her stewardship, Malaysia lost RM1.2 trillion in illicit outflows in 10 years (2002 to 2012) and US$54 billion in 2011 alone.
Has Zeti or Bank Negara Malaysia ( BNM) explained how did that happen and who were the culprits and the actions taken?
We wonder whether the 1Malaysia Development Berhad (1MDB)-linked alleged multi-billion-dollar/ringgit global money laundering scandal has been factored into that 10-year period.
Whatever, Malaysians and Malaysia are today feeling the brunt of the financial and economic effects of BNM's incompetent monitoring of trans-border financial transactions, resulting in a vastly weakened Ringgit today.
Of course the illicit outflows are not the only reason for the Ringgit to trade well above the US$1 to RM4 level in the international forex market.Other major causes are the globally depressed oil and commodity prices, and Malaysia’s mounting federal debts at more than RM800 billion (or perhaps have even surpassed the RM1 trillion mark?). (Read these for context: http://victorlim2016.blogspot.my/2016/08/has-malaysias-federal-debt-surpassed.html and http://victorlim2016.blogspot.my/2016/09/cash-strapped-1mdb-pm-najib-selling.html http://victorlim2016.blogspot.my/2016/10/rm100-billion-crisis-looms-for-petronas.html)
Continue read the following depressing news for details:
"Report: Over a trillion ringgit fled Malaysia through backchannels
Thursday December 12, 2013
11:23 AM GMT+8
UPDATED:
December 12, 2013
01:51 PM GMT+8
 |
| An employee of a money changer counts US dollar notes for a customer, as Indonesian rupiah is seen in the background, in Makassar January 31, 2013. – Reuters pic |
The massive loss of capital via illegal channels meant Malaysia was now fourth in a list of countries worldwide haemorrhaging funds to crime, corruption and misreporting, behind only China, Russia and Mexico in terms of severity. Malaysia was fifth in the previous edition.
“Anonymous shell companies, tax haven secrecy, and trade-based money laundering techniques drained nearly a trillion dollars from the world’s poorest in 2011, at a time when rich and poor nations alike are struggling to spur economic growth,” GFI chief Raymond Barker said in a release accompanying the report.
“This study should serve as a wake-up call to world leaders: The time to act is now.”
In its report titled “Illicit Financial Outflows from Developing Countries: 2002-2011”, GFI categorised such activity as all unrecorded private financial outflows involving capital that is illegally earned, transferred, or utilised, generally used by residents to accumulate foreign assets in contravention of applicable capital controls and regulatory frameworks.
It explained that this included funds earned legitimately, such as the profits of a legitimate business, as their transfer abroad in violation of exchange control regulations or corporate tax laws would render the capital illicit.
Asia as a whole were the largest “exporters” of illicit wealth, accounting for 39.6 per cent of the US$946.7 billion that GFI recorded in 2011. The total figure also represented a 13.7-per cent growth from the previous year, and an average of 10.2 per cent annually since 2002.
The worsening was also reflected in Malaysia, which has seen illicit outflows climb gradually from US$19.7 billion in 2002 to a peak of US$64.5 billion in 2010 before dipping to US$54 billion the year after. On average, US$37 billion left the country unrecorded for every year of the decade. - malaymail.online"
"Business News
Home > Business > Business News
Tuesday, 18 October 2016
Ringgit hits 8-month low against US$
BY S. PUSPADEVI
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| Maybank Kim Eng head of foreign exchange research Saktiandi Supaat told StarBiz that the greenback, which had been bullish against major currencies, would strengthen against the ringgit to between 4.25 and 4.30 before retreating to the 4.10 or 4.15 level by year-end. |
Expectations of another rate hike by the US Federal Reserve (Fed) had prompted investors to sell their holdings in emerging markets, including Malaysia. Foreign investors pulled out RM227mil from Bursa Malaysia last week, MIDF Research said in a note yesterday.
Maybank Kim Eng head of foreign exchange research Saktiandi Supaat told StarBiz that the greenback, which had been bullish against major currencies, would strengthen against the ringgit to between 4.25 and 4.30 before retreating to the 4.10 or 4.15 level by year-end.
“Fed chair Janet Yellen’s comments hinted of a possibility for the US Fed to keep its current monetary stance. Still, markets are not convinced,” Saktiandi said.
The ringgit declined 0.5% against the US dollar yesterday to 4.218 – its lowest level since late February this year.
Traders have priced in a close to 70% probability that the Fed would raise the benchmark interest rate by at least 25 basis points in the December meeting.
Analysts believed there would be no rate hike in November, close to the US presidential election, but said there could be one in the December meeting.
The Fed raised the federal funds rate last December by 25 basis points, while the minutes of the September Federal Open Market Committee meeting showed that policymakers were deeply divided over the next rate hike.
Yellen had said that any rate hike would be data-dependent, with focus especially on jobs.
Saktiandi said that the strengthening oil prices would support the ringgit, but felt that emerging-market currencies would bear the brunt of the political uncertainties surrounding the debate over the manner in which Britain would exit the European Union.
However, he noted that while oil prices had mitigated some of the ringgit’s weakness, the yen weakness and in particular speculation that Beijing may lower the yuan further would continue to weigh on the ringgit. Saktiandi said should Chinese policy-makers devalue the yuan, this would have an impact on Asian currencies.
He added that should Bank Negara choose to cut in the benchmark overnight policy rate (OPR), this could make the ringgit more fragile. The central bank lowered the OPR by 25 basis points in July to 3% on the weakening economic outlook.
Meanwhile, a technical analyst said the ringgit would soon trade at 4.25 to the greenback due to speculation over a US rate hike. He said the weakening ringgit could also be due to the speculation that oil prices may not hold at current levels of US$50 to US$52 per barrel. - The Star online"
"Zeti appointed member of AIIB advisory panel
Bernama
| October 19, 2016
Zeti will join 10 other key personnel on the advisory panel of the multilateral international development bank.
KUALA LUMPUR: Former Bank Negara Malaysia (BNM) Governor Zeti Akhtar Aziz has been appointed as a member of the international advisory panel of Asian Infrastructure Investment Bank (AIIB).
Zeti, ranked the world’s best central bank chief in 2009 by Global Finance magazine, retired in April after 16 years of being at the helm of BNM.
In a statement, AIIB announced that Zeti would join 10 other key personnel on the advisory panel.
She will join former Pakistan Prime Minister Shaukat Aziz, former Swedish Finance Minister Anders Borg, former Japanese Prime Minister Yukio Hatoyama and Global Foundation Secretary-General Steve Howard.
Also on the panel are Chair Professor of the Korea National Diplomatic Academy and former South Korea Deputy Prime Minister and Minister of Strategy and Finance Dr Oh-Seok Hyun, former Nigerian Finance Minister and former World Bank Managing Director Dr Ngozi Okonjo-Iweala.
Former Finance Minister of Timor-Leste Emilia Pires, former US Ambassador, Chairman and Chief Executive Officer of Global Strategic Associates Paul Speltz, Professor at the London School of Economics and former Chief Economist at the World Bank Lord Nicholas Stern and former Chief Executive of Hong Kong SAR Tung Chee-Hwa make the remaining members of the panel.
AIIB said the first meeting of the advisory panel was held in Beijing today.
“The panel provides impartial, objective and independent advice to the president, allowing the bank to benefit from the international experience and expertise of panel members,” it said.
At the meeting, panel members discussed the global economic situation and its implications on the bank’s operations, the need to promote green infrastructure in the new global agenda and the importance of increasing private sector involvement in the region’s infrastructure.
At the end of the meeting, AIIB President Jin Liqun said: “It is a great honour to convene such an experienced and diverse group of international leaders to advise on the development of the bank’s strategy.
“I have no doubt that the advice the panel provides will help shape the development of the bank in the years ahead.
“And I could not ask for a better group of ambassadors to help promote our new bank to the world.”
AIIB, a multilateral international development bank, was set up on Dec 25, 2015, with an initial capital of USD100 billion, one million shares and an initial paid-up capital of USD20 billion. - Bernama/FMT"
"Oil prices DROP as market awaits OPEC action
Business | October 18, 2016 by | 0 Comments
Crude futures fell Monday amid growing signs of intransigence among OPEC members following the group’s agreement to limit output, and market belief that any momentum gained from the agreement has now been priced in.
U.S. crude futures for November delivery settled down 41 cents, or 0.81%, at $49.94 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 43 cents, or 0.83%, to $51.52 a barrel on the ICE Futures Europe.
The Organization of the Petroleum Exporting Countries’ agreement last month to cut production has propelled crude markets upward in recent weeks. But the plan doesn’t say how much each individual country will have to cut, and disputes over how OPEC calculates countries’ output could become sticking points standing in the way of a deal.
Ali Kardor, managing director of National Iranian Oil Co., said Monday in Tehran that OPEC’s output estimates are “not acceptable,” and said Iran is producing more than the cartel has estimated, according to Bloomberg News.
Iran would be exempt from any cuts under last month’s agreement, but signs of the country’s commitment to increase production are weighing on prices.
“Oil is back under pressure because we’re seeing rumblings out of members of OPEC who are unhappy with how the production figures are calculated,” said Andy Lipow, president of Lipow Oil Associates in Houston.” “The market has become more and more skeptical of an actual implementation.”
Stephen Schork, author of the energy trading newsletter, the Schork Report, said recent high prices can’t be sustained unless the cartel continues generating bullish headlines.
“Without that, what do we have here? A market that has been inflated over the past few weeks based on the rhetoric we’re getting out of OPEC.”
Commerzbank pointed to the growing number of net long positions, a market term for a commodities contract that expects prices to rise, as proof that traders are expecting higher prices. However, it added that the situation could change quickly.
“Whether investors will stick to their guns will depend primarily on whether OPEC maintains the credibility of its announced production cuts, “ Commerzbank analysts said in a note.
Meanwhile in the U.S., market participants are anticipating that crude supplies could increase for a second week, with refiners running more slowly as they undergo seasonal plant maintenance, said Carl Larry, director of oil and gas at Frost & Sullivan.
“Repairs are going to last longer than normal” after a summer of running at high rates, he said.
The U.S., the oil-field services company Baker Hughes Inc. reported that oil rig count increased by four last week. Rig counts are generally viewed as a proxy for activity in the U.S. oil sector and observers believe that as prices stay above $50 a barrel, the number could increase further in the coming weeks.
Gasoline futures fell slightly, settling down 0.08% at $1.4924 a gallon. Diesel futures fell 1.12 cents, or 0.71%, to $1.5561 a gallon.– WSJ"
(Also read this for context: http://victorlim2016.blogspot.my/2016/10/ringgits-woes-world-oil-prices-unlikely.html)
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