Malaysia’s central bank announced yesterday a new spot fixing methodology for US dollar/Malaysian ringgit trade effective on July 18, which will be based on the weighted average volume of transactions by domestic financial institutions.

Bank Negara Malaysia said in a statement that the new methodology is more transparent and better reflects underlying trades during the day. Previously, the US$/RM Reference Rate was based on quotations from selected banks.

The central bank also said that trading in the onshore ringgit market will be extended by an hour to 6pm.

- Reuters