MALAYSIA is NO.49 in the World with respect to our Gold Reserves as at January 2012.
( Read, http://www.relbanks.com/rankings/world-gold-reserves )
The ranking DOES NOT concern me, what I'm concerned about are:-
1) The actual tonnage that Malaysia holds I.e. approx.37 tonnes.
2) Gold percentage as a percentage of Malaysia's Forex Reserves I.e. 1.5%
To be crude Malaysia's Ringgit is part of a massive, legalised "Pak Man Telo" scam.
Why do I say that!!!???
Ringgit is backed by a basket of currencies. Though the % holdings are never known, it's a "no-brainer" that the "usual suspects or culprits" held as reserves by BNM are the US Dollar, European EURO, Japanese Yen & Chinese Yuan.
Most of these currencies' economies are to put it mildly in "deep shit". USA with it's various Quantitative Easings (QE 1, 2 etc), Europe with the PIIGS economies bankrupt or almost there coupled with slow or negative growth, record unemployment and Japan with fractional growth.
You can relate this to the 2008/2009 Sub-Prime crisis, where financial instruments of a lower financial rating e.g. BBB+ are put/bundled together and given a higher rating e.g. A or, AA by the Rating Agencies like Moodys, Fitch etc ( paid by Investment banks) and sold
immediately to the money/financial market by these banks not wanting to keep this repackaged instruments as an "On Balance Sheet" item.
NOW, replace certain words in the above statement with the following:-
Forex = Sub-Prime
Currency = Financial Instruments
Country Rating = Financial Rating
Country/Nation = Investment Banks / Banks
GDP/GNP = On Balance Sheet Item.
......and wallah!
Yet, the currencies of these troubled economies are "Propping Up" or, forming the backbone of our Ringgit.
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