The other stick against banks in Malaysia getting involved in NDF transactions is the potential punitive action by the central bank. Bank Negara says it wants to provide those same avenues for companies and investors in the onshore market. The one thing that has bothered Bank Negara for some time is the absence of transparency in the NDF market. That is why we have a firm position on the NDF market.”That, Bank Negara feels, is important because of the influence the NDF market has on the onshore rates. The difference is that in the onshore market, Bank Negara can step in and provide liquidity when volatility picks up.

Source: The Star November 18, 2016 23:16 UTC