Retail rate of pound sterling moving closer to interbank rate - MAMSB

KUALA LUMPUR: The Malaysian retail currency exchange rate for pound sterling is moving closer in line with the interbank rate, said the Malaysian Association of Money Services Business (MAMSB).

Its president Ramasamy K Veeran said the mechanism and speed of exchange rates to adjust to changes in the market conditions for the physical foreign currency market normally differed from the interbank rate or mid-market rates that could be sourced online. 

He said for physical foreign currency notes, there were operations costs factored in such as holding and logistics costs.

The supply of the pound sterling, which is sourced internationally, was a major determinant of the retail exchange rate, and with supplies being replenished daily, the retail exchange rate of the pound sterling should normalise further, he said.

He said this in a statement on Thursday in response to media reports in relation to the pound sterling retail rates by licensed money changers.

He assured the public that the licensed money changers and wholesale currency businesses in Malaysia were doing their best to ensure the exchange rates quoted were swiftly adjusted to reflect the prevailing market conditions. 

“The price adjustments to the pound sterling can already be seen in the Klang Valley where there is a high volume of transactions with some licensed money changers selling the pound sterling at a rate of between 5.57 and 5.60 as of today,” he said.

The MAMSB said following the results of Britain’s referendum on its European Union membership, there was limited supply of the pound sterling globally.

It said the licensed money changers and wholesale currency businesses in Malaysia would work hard to ensure there was sufficient supply of the pound sterling in the market to meet current demand.

The MAMSB said it would continue to monitor the situation in the local currency exchange market and respond to consumer needs. - Bernama