FMIP

OVERNIGHT
POLICY RATE

3.00%

as at 06 Nov 2024

MGS 10 YEAR
YIELD

3.81%

as at 20 Nov 2024

MYOR

3.00%

as at 20 Nov 2024

KL USD/MYR
REF RATE

4.4680

as at 20 Nov 2024

Daily FX
Turnover

USD 19.30B

as at 20 Nov 2024

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Frequently Asked Questions

Frequently Asked Questions

Dynamic Hedging

1.	Can investor register for dynamic hedging at firm level instead of fund level
	Yes.

2.	Can investor sell USD/MYR forward beyond 125% of underlying?
	Yes, subject to approval. Investors may apply and justify to BNM.

3.	Can investor undertake dynamic hedging with other banks besides their custodian banks?
	Yes, with onshore banks or AOO (third-party FX).

Documentation

1.	What is deemed as proof of underlying?
	Any document which proves holding of assets, payments, acquisitions & disposals, proof of accounts, etc.

2.	Is it a must to provide proof of underlying for every transaction?
	No. Onshore banks / AOOs may exercise their own KYC process with reference to the Minimum Due Diligence guide.

3.	Can documents be furnished post-transaction?
	Yes. As guided by onshore banks’ / AOOs' KYC processes.

Third Party FX

1.	Is prefunding of account necessary for settlement?
	There is no regulatory requirement of prefunding for any MYR financial instrument settlements.

2.	Can a non-resident custodian bank or stockbroking entity obtain an overdraft facility from a licensed onshore bank?
	Yes. The overdraft facility shall be solely for the purpose of mitigating settlement failure for ringgit securities and instruments due to inadvertent delay (system failure or payment glitch due to unplanned events) of payment by the non-resident with maximum tenure of 2 business days.

3.	Can a licensed onshore bank ascertain the reason for the settlement failure with regard to the overdraft facility by the non-resident custodian bank or stockbroking entity on post-transaction basis?
	Yes, provided that it is in line with the licensed onshore bank's due diligence process.

Detailed FAQs