Published: Thursday February 28, 2013 MYT 11:22:00 AM

Bank Negara to tighten rules on fixing onshore rates for ringgit

KUALA LUMPUR: Bank Negara Malaysia will tighten rules on the fixing of onshore reference rates for the ringgit currency, two sources with direct knowledge of the plans told Reuters on Thursday.

The central bank has also asked the Malaysian Forex Association to increase the number of banks contributing to the ringgit reference rates to 15 from 11 previously, the sources said.

"The central bank has come up with this initiative to make the local rate fixing process more robust," said one of the sources who declined to be named as he is not authorised to speak to the media.

Bank Negara's new rules are part of a wider move by Southeast Asian regulators to overhaul the process of setting key currency rates after emerging evidence of traders from banks in Singapore colluding to manipulate the market.

Bank Negara is expected to issue a statement later on Thursday.

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