what effect on MFI fixed term deposits??

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wolfcreek
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what effect on MFI fixed term deposits??

Post by wolfcreek » Wed Jan 16, 2019 11:05 am

What effect would a loss of preferential trade status for Cambodia have on MFI's (and fixed term deposits in those institutions)?
davegorman
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Re: what effect on MFI fixed term deposits??

Post by davegorman » Wed Jan 16, 2019 11:08 am

EBA will not be stopped.
wolfcreek
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Re: what effect on MFI fixed term deposits??

Post by wolfcreek » Wed Jan 16, 2019 11:12 am

Thanks, but that is not my question. What would be the effect if it were to be stopped?
davegorman
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Re: what effect on MFI fixed term deposits??

Post by davegorman » Wed Jan 16, 2019 11:17 am

I don’t think it will have any effect but then it might as I’m not an economist or privy to MFI accounts.

Investing any money into Cambodia is slightly more risky than back home. If you want to make good returns do it and stop worrying about “what ifs”.

You should be more concerned about a possible worldwide economic slowdown.
wolfcreek
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Re: what effect on MFI fixed term deposits??

Post by wolfcreek » Wed Jan 16, 2019 11:29 am

Well, yes, there is that possibility too.

But one would (hopefully) still be able to go to his/her MFI and withdraw the FTD money in the event that the EU and/or the US were to revoke the preferential trade/EBA status.

On the other hand, it might be a scenario like garment factory workers in Cambodia sometimes face: they get up and go to work one morning only to learn that all the machinery, materials, equipment, and inventory disappeared overnight....
davegorman
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Re: what effect on MFI fixed term deposits??

Post by davegorman » Wed Jan 16, 2019 11:40 am

If that was the case the whole country would implode. All MFIs are partly owned by foreign banks and have large cash reserves.
wolfcreek
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Re: what effect on MFI fixed term deposits??

Post by wolfcreek » Wed Jan 16, 2019 6:33 pm

Perhaps. But remember that it has imploded before....
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