KUALA LUMPUR:
The US$/ringgit fell as much as 0.4%, most since March 18, to 4.1565. Pair gained 1% in previous 12 sessions.Malaysia’s GDP and current-account data are fairly positive, and are helping to support the ringgit, says Divya Devesh, head of Asean and South-Asia FX research at Standard Chartered Bank in Singapore.Although domestic drivers have been supportive, external backdrop is quite negative for EM FX with concerns around further escalation of the trade war.
Malaysian 1Q GDP +4.5% y/y vs est. +4.3%. Current-account surplus widened to the most in five years. - BloombergDevelopment Initiatives to Enhance Market Liquidity and Accessibility Bank Negara Malaysia continually undertakes initiatives to broaden and deepen the Malaysian financial market. As part of these ongoing initiatives, BNM actively engages market participants to identify measures to promote a conducive and vibrant market environment that is supportive of domestic economic activities.
In line with this, BNM is pleased to announce further development initiatives aimed at improving market efficiency, accessibility and liquidity in the domestic financial market, whilst preserving an orderly and transparent onshore financial market.Recognising the important role of the repo market in secondary market trading activities, BNM will further increase the availability of off-the-run bonds to be borrowed via repo for market-making activities.