Foreign Exchange Policy

Bank Negara Malaysia wishes to announce changes in the foreign exchange administration policies aimed at facilitating operational efficiencies and risk management by businesses and financial institutions. 

The changes which will take immediate effect are:

1. Greater flexibility in the management of export proceeds
   Exporters are allowed to automatically sweep export proceeds into their Trade Foreign Currency Accounts maintained with onshore banks to meet up to 6 months’ foreign currency obligations without the need to first convert proceeds into ringgit.  The flexibility is available upon exporters establishing their 6 months’ foreign currency obligations with their respective onshore banks.
    
2. Flexible hedging of foreign currency obligations
   Greater flexibility is provided upon application to the Bank for residents to hedge:
   • foreign currency obligations beyond 6 months; and
   • foreign currency exposures arising from invoices issued in foreign currency under international pricing practices for domestic trade in goods and services.  
3. Wider access for non-residents to the onshore market financial market
   Non-resident corporations are allowed to trade in ringgit-denominated interest rate derivatives via the Appointed Overseas Offices, subject to back-to-back arrangements with onshore banks.  This aims to further deepen the onshore market for interest rate derivatives to support risk management by businesses. 

Further details of the measures are provided in the Supplementary Notice No. 4 on Foreign Exchange Administration Rules issued by the Bank. 

See also : Frequently Asked Questions