Bank Negara relaxes ringgit-denominated interest rate swap trade for non-resident banks

KUALA LUMPUR (Reuters) - Bank Negara said on Wednesday non-resident banks may trade ringgit-denominated interest rate swap (IRS) without any underlying commitment with any onshore bank or their appointed overseas offices starting March 15.

"This flexibility will encourage the participation of non-resident banks in the onshore IRS market, thus promoting a more liquid domestic market to lower hedging costs for corporates and asset managers, and funding costs for onshore banks," Bank Negara said in a statement.