KUALA LUMPUR: Bank Negara Malaysia (BNM) will no longer tolerate ringgit transactions in the non-deliverable forward (NDF) market and its damaging influence over the onshore pricing of the local currency, said its Governor, Datuk Muhammad Ibrahim. He said that the activities in the offshore market, in particular the ringgit NDF market, had brought on observable adverse impacts on the onshore market. “The impact of the NDF market volatility has been clearly pervasive in the onshore market and several foreign exchange (FX) traders in the domestic market were observed to be looking towards the NDF market to provide cues in determining the opening market price for the ringgit. The offshore market, which is driven by speculative interest, lacks the onshore market’s diverse spectrum of market participants and information. Muhammad also said that onshore banks were reminded against quoting onshore ringgit opening price referencing to the offshore prices.

Source: New Strait Times November 19, 2016 08:33 UTC