Low oil prices will likely lead to reduced investment in new exploration or development, and put at risk oil investment projects in low income countries or in unconventional sources such as shale oil,tar sands, deep sea oil fields and oil in the Artic zone, said LeeHeng Guie(filepic), executive director, Socio Economic Research Centre.
FOLLOWING the measure to discourage the trading of non-deliverable forwards (NDFs) offshore, Bank Negara has announced several initiatives to liberalise and deregulate the onshore ringgit hedging.
These include providing market participants the flexibility to freely and actively hedge their US dollar and Chinese yuan exposures up to a limit of RM6mil per client per bank; allowing resident and non-resident fund managers to actively manage foreign exchange exposures of up to 25% of their invested assets; to broaden accessibility of foreign investors and corporates to the onshore foreign exchange market via the Appointed Overseas Office framework.
