Bank Negara tightens rules against ringgit offshore trade


Modified 14 Nov 2016, 4:50 am

Bank Negara Malaysia is taking measures to re-enforce existing rules that have in been in place to prohibit facilitation of ringgit non-deliverable forward (NDF).

In a statement today, the central bank said the ringgit remained as a non-internationalised currency, thus any offshore trading of ringgit such as ringgit NDF was not recognised.

It stressed that there was no change in the Foreign Exchange Administration (FEA) rules and there was no introduction of any new measures.

"The bank would like to remind all market participants to observe compliance with the existing FEA rules and the Malaysian licensed banks must avert from facilitating any foreign exchange (FX) transaction that could be related to offshore ringgit NDF market activities," BNM said.

It also advised the public to approach Malaysia licensed banks for all foreign exchange requirements.

Foreign fund and asset managers should contact Malaysian licensed banks for advices and execution of any foreign exchange transactions, the central bank said.

"All Malaysian licensed banks will continue to facilitate customers' request for foreign exchange services, subject to compliance to FEA," it added.

BNM said Malaysia FX market remained open and it stood ready to provide liquidity if necessary to ensure orderly market.

"Malaysia continues to welcome real investments and provide all avenues for FX transactions and hedging requirements onshore," the central bank said.

- Bernama