KUALA LUMPUR: Malaysia could consider a framework for the yuan-ringgit cross currency market as it looks to boost the use of the Chinese currency in its market, a central bank official said. The framework will be similar to the existing Thai baht-ringgit agreement that gave market makers certain flexibilities to facilitate doing business, Bank Negara assistant governor Adnan Zaylani Mohamad Zahid said in a speech posted on the central bank’s website. The central bank is also developing a framework to help Malaysian investors hedge foreign exchange exposures up to a certain limit. The soon-to-be finalised framework is specific to the dollar-yuan and yuan-ringgit pairs, Adnan said. Malaysia should also give special attention to yuan trade financing and look to develop more investment products in yuan, he said.

Source: The Star November 01, 2016 23:41 UTC