Bank Negara eases hedging rules

The governor said that to further deepen the local hedging market, Bank Negara was working with the Securities Commission and Bursa Malaysia to introduce a US dollar and yuan-ringgit futures onshore exchange.

PETALING JAYA: Bank Negara will make it easier for local companies and individuals to hedge their US dollar and Chinese yuan requirements at home.

In its fight to fend off speculative attacks on the ringgit from traders taking positions in offshore markets, the central bank announced a pilot programme for the US dollar-ringgit and yuan-ringgit that allows companies to hedged their positions with minimal questions asked on the reasons for undertaking such transactions