(Reuters file photo)Malaysia is succeeding in snuffing out currency speculation -- now it has to deal with the fallout. Offshore trading in ringgit non-deliverable forwards has dropped by about 70% since policy makers took steps in November to deter foreign banks from trading the contracts, according to EBS BrokerTec’s electronic-trading platform. “Some banks say they can hedge onshore for their clients for trade-related transactions.”Spurred by an uptick in ringgit volatility in the second half, Bank Negara Malaysia’s campaign is biting after local lenders were told not to facilitate currency transactions related to offshore ringgit market activities. After sliding to a 19-year low in January, the ringgit has clawed back, trading near a four-month high as swings abate. The central bank continues to provide liquidity to the ringgit market, which is still adjusting to the curbs, he said.

Source: Bangkok Post March 29, 2017 06:56 UTC