MALAYSIA'S crackdown on currency speculators has come at a cost. While it successfully reduced ringgit volatility, it is threatening to discourage overseas investors.
The central bank's steps to curb trading in offshore non-deliverable forwards last year has made it harder for global funds to hedge their exposure to Malaysia,according to Macquarie Bank Ltd.
Global funds cut holdings of Malaysian debt by a combined 25.2 billion ringgit (S$8.05 billion) in November and December, the biggest two-month outflow since 2008, central bank data show.
The difference between onshore and forward prices for the ringgit jumped to a record in November, spurring the central bank to crack down on NDF...