New fix for the ringgit

New system: From July 18, fixing of the ringgit will be done with a new methodology to reflect actual supply and demand for the ringgit.

PETALING JAYA: In a move that Bank Negara sees as a trading mechanism reflecting the actual supply and demand for the ringgit, a new fixing methodology will come into effect starting July 18.

The new methodology for the US dollar/ringgit spot fixing that the central bank worked out in collaboration with the Financial Markets Association of Malaysia (FMA) is based on market transaction data rather than submission of quotations by selected banks.