KUALA LUMPUR, April 30 (NNN-BERNAMA) \u2013 Bank Negara Malaysia has announced a further refinement in the foreign exchange policy\u00a0aimed at\u00a0improving\u00a0business efficiency and providing\u00a0flexibility for corporates to better manage their foreign exchange risk exposure.<\/p>\n\n\n\n
There are five measures altogether which are effective immediately.<\/p>\n\n\n\n
The first refinement in policy is an exemption from the requirement for resident exporters to convert export proceeds below RM200,000 per transaction into ringgit.<\/p>\n\n\n\n
\u201cThis flexibility will alleviate the administrative burden for exporters, particularly SMEs, to meet their foreign currency (FC) obligations,\u201d the central bank said in a statement.<\/p>\n\n\n\n
The second measure is that residents are free to hedge foreign currency loan obligations up to the underlying tenure.<\/p>\n\n\n\n
Previously, residents could hedge their foreign currency loan obligations up to 12 months only. This flexibility enables residents to better manage their FX risk arising from longer-term foreign currency loan exposure.<\/p>\n\n\n\n
\u201cThe third refinement in the policy is all entities are allowed to unwind their forward positions in managing their hedging costs except for portfolio investment in response to the changing market conditions. Previously, residents and non-residents needed to seek the Bank\u2019s approval to unwind hedging positions.<\/p>\n\n\n\n
\u201cResidents are also free to obtain financial guarantee from non-residents. Before this, they could only obtain financial guarantees up to an aggregate limit of RM100 million,\u201d BNM said, noting that removal of the limit enables foreign investors to better support their entities operating in Malaysia.<\/p>\n\n\n\n
As for the fifth measure, residents are free to issue financial guarantee to non-residents with some exceptions from the previous aggregate limit of RM50 million.<\/p>\n\n\n\n
—\u00a0NNN-BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":"
KUALA LUMPUR, April 30 (NNN-BERNAMA) \u2013 Bank Negara Malaysia has announced a further refinement in the foreign exchange policy\u00a0aimed at\u00a0improving\u00a0business efficiency and providing\u00a0flexibility for corporates to better manage their foreign exchange risk exposure. There are five measures altogether which are effective immediately. The first refinement in policy is an exemption from the requirement for resident […]<\/p>\n","protected":false},"author":19,"featured_media":52834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[288,300,318],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/72403"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=72403"}],"version-history":[{"count":0,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/72403\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/media\/52834"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=72403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=72403"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=72403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}