Malaysia's Central Bank Announces Financial Market Liberation Measures

KUALA LUMPUR, Jan 30 (Bernama) -- Licensed onshore banks are now allowed to trade in foreign currencies against another foreign currency with a resident effective Tuesday, Bank Negara Malaysia announced on Monday. The central bank also announced that beginning Tuesday, licensed onshore banks are permitted to offer ringgit-denominated interest rate derivatives to a non-bank non-resident. Flexibility is also given for a resident to convert their existing ringgit or foreign currency debt obligation into a debt obligation of another foreign currency, it said in a statement. All these measures are part of continuous efforts by Bank Negara to enhance competitiveness in the economy and to develop the domestic financial market. The measures in line with the road thrust of the Financial Sector Blueprint will contribute towards increasing liquidity, depth and participation of wider range of players in the domestic financial market. -- BERNAMA Malaysia central bank