Malaysian central bank strengthens onshore hedging

Bank Negara is complementing last year's NDF restrictions with a more open onshore market

Muhammad-bin-Ibrahim_Bank Negara_BNM credit_web.jpg
Muhammad bin Ibrahim: "Research shows 80% of the activity in the NDF market was pure speculation"

The governor of Bank Negara Malaysia says curbs imposed on ringgit non-deliverable forwards (NDF) last year have worked far better than expected, while acknowledging the need for a deeper onshore hedging market.

To curb speculation it viewed as a threat to currency stability, Malaysia’s central bank moved to rein in the US dollar/ringgit NDF market in November by asking banks with an onshore presence in the country not to deal in NDFs.

“We have achieved much more than we had hoped for. We

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