Measures to develop onshore financial market to include exporters, fund managers

At 9.13 am(0113gmt), the local unit stood at 4.4600/4680 against the greenback from 4.4590/4650 on Tuesday.(Filepic)

These flexibilities include FX hedging (own account/on behalf of client) for current and financial account based on commitment, opening of ringgit account (book-keeping) and extension of ringgit trade financing. 

Streamlining treatment for investment in foreign currency assets

Resident entities with domestic ringgit borrowing are free to invest in foreign currency assets both onshore and abroad up to the prudential limit of RM50 million. Residents without domestic ringgit borrowing shall continue to enjoy flexibility of investing in foreign currency assets both onshore and abroad up to any amount.

This gives equal treatment for residents with ringgit borrowings investing in foreign currency assets whether in the onshore or offshore market.

Incentives and treatment of export proceeds 

Exporters can retain up to 25% of export proceeds in foreign currency. They may hold higher balances with approval from BNM to meet their obligations in foreign currency. 

Payment by resident exporters for settlement of domestic trade in goods and services is now to be made fully in ringgit.