Offshore ringgit trading down 70% after NDF curbs

Singapore

MALAYSIA is succeeding in snuffing out currency speculation - now it has to deal with the fallout.

Offshore trading in ringgit non-deliverable forwards (NDFs) has dropped by about 70 per cent since policymakers took steps in November to deter foreign banks from trading the contracts, according to EBS BrokerTec's electronic-trading platform. Now, officials are looking at easing rules on the short-selling of government debt after the crackdown saw global funds withdraw more than RM35 billion (S$11 billion) out of Malaysian sovereign bonds in the four months through February.