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Payment in Foreign Currency

Payment in Foreign Currency

Payment in foreign currency between residents    
A resident is free to pay or receive foreign currency (FC) to or from another resident for the following:

  • Any purpose between immediate family members;
  • Education, employment or migration outside Malaysia;
  • A transaction between the resident and a licensed onshore bank, a licensed international takaful operator or an international currency business unit of a licensed takaful operator, in the conduct of the latter’s business involving FC;
  • Settlement of –
    • a FC-denominated derivative, excluding exchange rate derivatives, transacted on a Specified Exchange under CMSA between the resident and a resident futures broker;
    • a commodity murabahah transaction between residents undertaken through a resident commodity or a non-resident trading service provider;
    • a domestic trade in goods or services between a resident exporter and resident entities involved in Global Supply Chain operations in Malaysia, subject to specified conditions; or
    • a miscellaneous expense incurred outside Malaysia between a resident individual residing in Malaysia and a resident individual residing outside Malaysia.

Payment in foreign currency between resident and non-resident
A resident is free to make or receive FC payment to or from non-resident for any purpose, except for –

  1. FC-denominated derivatives offered by the resident unless it is approved by BNM or allowed under Part B of Notice 5;
  2. ringgit derivatives unless it is approved by BNM or allowed under Part B of Notice 5; or
  3. exchange rate derivatives offered by a non-resident unless it is approved by BNM or allowed under Notice 1.

Further Information