KUALA LUMPUR, Dec 28 (Reuters) - The Malaysian central bank said on Wednesday that the “disruptive influence” from the non-deliverable forward (NDF) market on the ringgit has subsided, making a success of its efforts to stifle the offshore market.
Last month, Bank Negara Malaysia began trying to force currency traders overseas to stop driving the ringgit lower and demanded that banks sign a commitment to cease trading the ringgit on the offshore NDF market. It also said it would implement several measures to boost onshore ringgit trade.
Liquidity on the onshore foreign exchange market registered a daily average volume of around $9 billion this month, compared to a monthly average of $8 billion in the previous 11 months, Bank Negara Malaysia said in a statement on Wednesday.
“FX flows comprise supply and demand from all major participants, including the exporters/importers, portfolio related and direct investments,” the central bank said.
Reporting by A. Ananthalakshmi