Malaysia seeks to nix '98 parallel as it herds ringgit bears

SINGAPORE (Nov 21): Malaysia’s attempt to cajole currency traders to stop selling down its plunging ringgit is evoking memories of 1998 capital controls among global banks -- a comparison policy makers were quick to discourage.

RBC Capital Markets and Brown Brothers Harriman said investors were reminded of the Asian financial crisis 18 years ago, after Bank Negara warned foreign banks this month against using offshore forwards to bet against the currency and vowed to limit speculation. While the central bank said Friday it was stepping in to “maintain orderliness” following a 5 percent tumble over the past month, Assistant Governor Adnan Zaylani said it wasn’t considering tightening controls on the flow of funds across its borders.

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