OVERNIGHT
POLICY RATE
3.00%
as at 05 Sep 2024
MGS 10 YEAR
YIELD
3.72%
as at 03 Oct 2024
MYOR
3.00%
as at 03 Oct 2024
KL USD/MYR
REF RATE
4.2111
as at 03 Oct 2024
Daily FX
Turnover
USD 16.19B
as at 03 Oct 2024
Hedging Frameworks

Alternative hedging frameworks are available to address differing needs and circumstances of investors. Non-residents with ringgit underlying exposure are free to transact in ringgit FX spot and forward transactions with onshore banks or AOOs. Non-residents may register under any of the following frameworks for greater flexibility.

 

Dynamic Hedging Programme

The flexibility to actively manage FX risk exposure via forward hedging activities with onshore banks and AOOs without the need to show any documentation.

1.

Framework Overview

2.

Forward Hedging for Institutional Investors

3.

Forward Hedging for Trust Banks


Registration by investors may be submitted directly to BNM at investorregister @bnm.gov.my or via onshore banks or AOOs.

Trust banks or global custodian banks may submit on behalf of investors to BNM.

 

Passive Hedging

Trust / custodian banks may transact on behalf of clients via onshore banks (no registration) or AOOs (require registration).

Registration by trust/custodian banks may be submitted directly to BNM at [email protected] or via AOOs.

 

 

Dynamic Hedging

Passive Hedging

Buy USD / Sell MYR forward

Up to 100% of underlying asset

Up to 100% of underlying asset

Sell USD / Buy MYR forward

Up to 25% of underlying asset*

-

Unwinding of forward

Allowed

Not allowed if underlying exists

Documentation

Not Required

Required

 

* Investors may apply to buy MYR forward above the 25% limit, subject to review on a case-by-case basis