Malaysia's central bank to launch alternative reference rate

[KUALA LUMPUR] Malaysia's central bank will launch an alternative reference rate to offer market participants more flexibility and hedging options, it said on Friday.

The alternate rate, called the Malaysia Overnight Rate (MYOR), will be administered and calculated by the central bank as the volume-weighted average rate of unsecured overnight ringgit interbank transactions, the central bank said in a statement.

The MYOR will run in parallel to the existing Kuala Lumpur Interbank Offered Rate (KLIBOR), it said.

REUTERS