Bank Negara slams SGX's introduction of ringgit futures
Published on: Thursday, August 10, 2017
Kuala Lumpur: Bank Negara Malaysia has slammed the Singapore Exchange's decision to introduce the ringgit futures, saying that the ringgit is a non-internationalised currency and thus offshore trading of ringgit on exchanges abroad is against the country's policy.The full statement is given below:BNM Stance on Ringgit Currency Derivatives Products in Offshore Market
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The recent introduction of the ringgit futures at the Singapore Stock Exchange (SGX) and the Intercontinental Exchange (ICE) or ICE Futures Singapore is inconsistent with Malaysia's foreign exchange administration (FEA) policy and rules. The Malaysian ringgit is a non-internationalised currency and thus, offshore trading of ringgit, in any form whether as a non-deliverable forward traded out of offshore financial centres or as a futures, options and other derivative contracts on exchanges outside of Malaysia, is against Malaysia's policy. Bank Negara Malaysia (BNM) would like to remind all market participants to observe the existing FEA rules. Contravention of the FEA is an offence under the Financial Services Act 2013 and Islamic Financial Services Act 2013.
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