Forgive for taking liberties with Prince songs, but at least the iShares MSCI Malaysia ETF (NYSE: EWM) existed in 1998 during the dark days of the Asian Financial Crisis. The lone Malaysia exchange traded fund actually debuted in the first quarter of 1996.
That is relevant because Malaysia's currency, the ringgit, is acting like it's 1998 and that is not a good thing. Back then, then-Prime Minister Mahathir Mohamad blamed George Soros, who knows a thing or two about shorting currencies, for sending the ringgit tumbling. These days, the ringgit is in free-fall. Whether or not hedge fund legends are behind the latest decline is immaterial.
What traders are pondering is whether or not Malaysia's central bank will revisit the use of capital controls as it did in the late 1990s and the ongoing impact of widespread corruption in the Asian nations.
“For Malaysia, the pressure is mounting as Prime Minister Najib Razak faces a ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5769143/malaysia-etf-parties-like-its-1998-but-thats-not-a-good-thing alt=Malaysia ETF Parties Like It's 1998, But That's Not A Good Thing>Full story available on Benzinga.com
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