Malaysia curbs offshore trading to stabilise ringgit

摘要

Malaysia's central bank has clamped down on offshore trading in the ringgit in a bid to stabilise the currency, prompting comparisons to currency controls last seen during the Asian financial crisis in 1997. In addition to intervening in the onshore market, Bank Negara Malaysia has asked foreign banks operating in the country to refrain from speculating in the offshore market "Because of adverse consequences on genuine investors and businesses, we should no longer tolerate the non-deliverable forward (NDF) market and its damaging influence over the onshore pricing of ringgit," BNM governor Muhammad Ibrahim said in a statement last week.