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Malaysia demands foreign banks commit to stop offshore ringgit trading: Reuters

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Malaysia demands foreign banks commit to stop offshore ringgit trading: Reuters

Reuters Published on Wed, Nov 16, 2016 / 7:21 PM GMT+8

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HONG KONG/SINGAPORE (Nov 16): Malaysia's central bank is asking foreign banks to make a written commitment to refrain from trading the ringgit in the offshore non-deliverable forwards market in its latest move to protect a weakening currency, banking sources said.

The central bank has sent a form letter to foreign banks, which asks for an "unconditional representation and commitment" to stop trading in any offshore Malaysian ringgit non-deliverable forwards or offshore derivatives.

Two separate sources at banks confirmed receipt of the letter.