Malaysia's central bank says will no longer tolerate ringgit trade in NDF market

KUALA LUMPUR: Malaysia's central bank said "prompt supervisory intervention" will be taken against any individuals or banks which are engaged in ringgit trade on the non-deliverable forwards (NDF) market.

Bank Negara Malaysia (BNM) Governor Muhammad Ibrahim said it has been made clear to local banks that onshore opening ringgit prices cannot reference offshore prices or be out of sync with the underlying fundamentals of the economy.

"This week has seen many noises surrounding these measures. There is no new policy on capital flows. There is no proxy capital control either," Muhammad said in a speech at an event on Friday night. The speech was released to the media on Saturday.