BNM unveils more measures to enhance competitiveness

KUALA LUMPUR (Jan 30): Bank Negara Malaysia announced on Monday more liberalisation measures to enhance the
economy’s competitiveness and to develop the domestic financial markets.
The liberalisation measures, which take effect on Tuesday, include permitting licensed onshore banks to trade foreign
currency against another foreign currency with a resident.
“To further deepen the domestic interest rate derivatives market, a licensed onshore bank is allowed to offer ringgitdenominated
interest rate derivatives to a non-bank non-resident.
“Towards enhancing the asset liability management of residents, flexibility is permitted for a resident to convert their existing
ringgit or foreign currency debt obligation into a debt obligation of another foreign currency,” said the central bank.
BNM said these measures -- in line with the broad thrust of the Financial Sector Blueprint – would increase the liquidity, depth
and participation of wider range of players in the domestic financial markets.