Bank Negara hits out at SGX and ICE

At Invest Malaysia recently, Bank Negara governor Datuk Seri Muhammad Ibrahim(inset filepic) said 80% of transactions of ringgit/dollar trading in offshore markets were speculative transactions. Malaysia has long maintained that the trading of the ringgit should be tied to trade-related activity.

PETALING JAYA: Bank Negara has hit out at the Singapore Stock Exchange (SGX) and the Intercontinental Exchange (ICE) in Singapore after the bourses introduced the trading of ringgit futures on their exchanges that went against the country’s policies.

Saying the introduction of the derivative contracts was inconsistent with Malaysia’s foreign exchange administration (FEA) policy and rules, the central bank reminded all market participants to observe existing FEA rules.