Malaysia says refines existing rules for interbank forex trades

[KUALA LUMPUR] Malaysia's central bank said on Wednesday that it would allow onshore banks to utilise export proceeds conversion of less than US$1 million per transaction to meet their clients' foreign currency requirements.

Bank Negara Malaysia said this would allow lenders to better manage conversion operations during the day.

BNM announced in December that exporters could only retain up to 25 per cent of export proceeds in a foreign currency, while the remainder must be converted into ringgit.

It also announced measures last year to clamp down on offshore trade of the ringgit.

REUTERS