Malaysia asks foreign banks to stop trading offshore ringgit NDFs

Hong Kong

FOREIGN banks have been asked to make a written commitment to Malaysia's central bank to stop trading the ringgit in the offshore non-deliverable forwards (NDF) market in the bank's latest move to protect a weakening currency, banking sources said.

Foreign banks have been sent a form letter to sign, which asks them for an "unconditional representation and commitment" to stop trading in any offshore Malaysian ringgit non-deliverable forwards or offshore derivatives.