Flexibility in IRS market

“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

KUALA LUMPUR: Bank Negara has announced that effective March 15, non-resident banks may trade ringgit-denominated interest rate swap (IRS) without any underlying commitment with any onshore bank or its appointed overseas offices.

The decision was based on the positive feedback and experience during the pilot.