M’sia slowly winning battle against FX speculators

Funds returning: The data for May, due next week, is expected to show even more foreign outflows have returned.

SINGAPORE: Foreign portfolio investors say they are coming back to Malaysia’s markets, six months after many of them revolted against the central bank’s crackdown on the offshore ringgit trading market.

Foreigners, who had held about half of the outstanding Malaysian government bonds, fled the market between November 2016 and March this year after Bank Negara said they could no longer trade in ringgit non-deliverable forwards (NDFs). These are offshore contracts used to hedge exposure to the ringgit.