Ringgit IRS trade by non-resident banks offers a positive signal

“It will send a signal not only to local but also global investors that Malaysia wants to move aggressively in the global economy and Bank Negara has a strong role to play, ” Juwai IQI Global chief economist Shan Saeed said. He added that Bank Negara has played its cards very strategically in the past and has prudent monetary policies to maintain the country’s growth, price and employment stability.l

KUALA LUMPUR: Bank Negara’s move to allow non-resident banks to trade in ringgit-denominated interest rate swap (IRS) effective March 15 is seen as a positive move by the central bank, signalling that it has the policy instrument and enough room to manoeuvre in the financial market, Juwai IQI Global chief economist Shan Saeed said.

He said this move would further strengthen the onshore market and give it the necessary boost.