USD/MYR rate promotes best practices for domestic mart
Published on: Thursday, June 16, 2016
Kuala Lumpur: Bank Negara Malaysia and the Financial Markets Association of Malaysia (FMA or PPKM1) Wednesday announced several changes as part of the effort to adopt global best practices for the domestic financial market.In a joint statement Wednesday, BNM and FMA noted that a new methodology is adopted in the USD/MYR Spot Fixing (PPKM-MYR) based on market transaction data, effective July 18, 2016.The official closing hour for the onshore ringgit market will also be extended to 6 pm from 5 pm previously, effective July 18, 2016, to give businesses additional time to complete their foreign exchange transactions.
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Nevertheless, the onshore market participants can continue to transact after the official closing hour.BNM Director of Investment Operations and Financial Market Adnan Zaylani said these enhancements to the Malaysian financial market infrastructure are among the first few initiatives discussed at the Financial Market Committee.The Financial Market Committee is an inclusive forum for all financial market stakeholders to further develop and improve the Malaysian financial markets. Under the new methodology, the reference rate will be known as Kuala Lumpur USD/MYR Reference Rate.
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It will be published daily at 3:30 pm and is computed based on weighted average volume of the interbank USD/MYR FX spot rate transacted by domestic financial institutions between 8 am and 3 pm. FMA President Lee Kok Kwan said the Kuala Lumpur USD/MYR Reference Rate would be based on market transaction data rather than submission of quotations by selected banks in the previous methodology.
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The market transaction data is sourced from online reporting by domestic financial institutions to Bank Negara Malaysia. Stay up-to-date by following Daily Express’s Telegram channel.
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