Published: Thursday February 28, 2013 MYT 6:02:00 PM

BNM tightens rules on fixing onshore ringgit rates

KUALA LUMPUR: Malaysia's central bank moved on Thursday to tighten rules on the fixing of onshore reference rates for the ringgit currency and "enhance the quality and integrity" of the process.

The central bank said from March 1, the calculation to fix the ringgit rate against the U.S. dollar will have to be based on quotes with a bid and ask spread of not more than 10 pips.

"The revised methodology for the fixing will ensure that the rates used in the fixing calculation are tradable rates and the derived fixing rate appropriately reflects the market rates,' the central bank said in a statement.

"This is a collaborative effort between Bank Negara Malaysia and Financial Markets Association Malaysia which aims at enhancing the quality and integrity of the USD/MYR fixing process." - Reuters

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