Bank Negara Malaysia building in Kuala Lumpur. FAIHAN GHANI/The Star.
KUALA LUMPUR: Bank Negara has confirmed that onshore banks can now utilise export proceeds conversion of less than US$1mil per transaction to meet their clients’ foreign currency requirements without referring to it.
In response to StarBiz’s front-page report Bank Negara eases forex rules on Wednesday, the central bank said in a statement that this allowed the onshore banks to better manage their conversion operations during the day without compromising on the overall objective of the measures announced on Dec 2, 2016.
However, Bank Negara said the changes that were made effective Feb 6 were not “an easing of restrictions,” calling it instead “a refinement of existing operational arrangements between onshore banks and Bank Negara.”
“Onshore banks have always been free to trade in any amount in the domestic foreign exchange interbank market,” it said, adding that the refined operational arrangement related to export proceeds conversion rules.
* To read StarBiz’s earlier report, go to Bank Negara eases forex rules
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