World Economy

Malaysia to Reinstate Offshore Trading Rules

Malaysia to Reinstate Offshore Trading RulesMalaysia to Reinstate Offshore Trading Rules

Malaysia’s central bank said that it was taking measures to re-enforce existing rules that are in place to prohibit facilitation of offshore trading of the ringgit.

The bank said Malaysia’s currency remains a non-internationalized currency, and thus any offshore trading of ringgit such as ringgit non-deliverable forward is not recognized. It added that Malaysia’s forex market remains open and the bank stands ready to provide liquidity if necessary to ensure an orderly market, Channel NewsAsia reported.

Malaysia’s ringgit sank to its weakest in more than 12 years in offshore markets on Friday.

“Bank Negara Malaysia would like to state that there is no change in the Foreign Exchange Administration rules and there is no introduction of any new measures,” the bank said in a statement.

Malaysia’s exports contracted at a wider-than-expected rate in September, official data released Friday showed, hurt primarily by a sharp decline in crude oil and natural gas shipments.

Exports totaled 68.03 billion ringgit ($16.21 billion) in September, 3.0% lower than the 70.15 billion ringgit recorded in the same month last year, the Statistics Department said in a statement. That compares to the median 2.0% drop predicted by economists and the 1.5% year-on-year growth in August. On a month-on-month basis, exports increased 0.7% from 67.6 billion ringgit.

Economists said the contraction in Malaysia’s September shipments was in line with shrinkages posted by major regional exporters such as China, Japan and Taiwan during the same month.


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