Kuala Lumpur, Feb 8 – With reference to a recent media report on the foreign exchange rules, Bank Negara Malaysia reminds and reiterates, in a statement, that the changes made effective from Feb 6, 2017, are not an easing of restrictions, but rather a refinement of existing operational arrangements between onshore banks and Bank Negara Malaysia.
Onshore banks have always been free to trade in any amount in the domestic foreign exchange interbank market. The refined operational arrangement relates to export proceeds conversion rules.
Bank Negara notes that to facilitate businesses’ banking needs, onshore banks can now utilise export proceeds conversion of less than US$1 million per transaction to meet their clients’ foreign currency requirements without referring to Bank Negara.
“This allows the onshore banks to better manage their conversion operations during the day without compromising on the overall objective of the measures announced on Dec 2, 2016,” it states.