Malaysia demands foreign banks commit to stop offshore ringgit trading: sources

HONG KONG/SINGAPORE Foreign banks have been asked to make a written commitment to Malaysia’s central bank to stop trading the ringgit in the offshore non-deliverable forwards market in the bank’s latest move to protect a weakening currency, banking sources said.

Foreign banks have been sent a form letter to sign, which asks them for an “unconditional representation and commitment” to stop trading in any offshore Malaysian ringgit MYRNDFOR= non-deliverable forwards or offshore derivatives.

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