KUALA LUMPUR: Daily average volume on the onshore foreign currency exchange (FX) market stands at US$12.3bil, according to Bank Negara.
Activities in the FX forward and swap markets account for almost half of the daily volume.
The central bank, in a statement today, said the FX forward market has recorded a two-fold increase in volume since the introduction of the dynamic hedging programme in December 2016.
As at end of the first quarter of 2019, the total assets under this programme amounted to US$31.2bil under the management of 70 non-residents and 17 resident investors.
The dynamic hedging programme was introduced as part of Bank Negara’s initiative to provide market access for institutional investors to actively manage their FX exposures of their invested assets.