Adnan Zaylani Mohamad Zahid, assistant governor of the Bank Negara Malaysia, speaks during a news conference in Kuala Lumpur, Malaysia, on Thursday, April 13, 2017. Malaysia's central bank is trying to revive interest in its financial markets. In December it revised rules to encourage investors to hedge their currency exposure onshore and ordered exporters to hold at least 75 percent of export proceeds in ringgit.
KUALA LUMPUR: Bank Negara has unveiled further measures to broaden and deepen the onshore foreign exchange (forex) and bond markets, as it seeks to reassure investors that the local financial system has ample options for them to hedge their foreign currency exposure.
At a briefing yesterday, the central bank’s financial markets committee (FMC) introduced further initiatives such as allowing companies to hedge up to RM6mil of their forex exposure and non-bank entities to hedge 100% of their forward positions.
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