Foreign Exchange Policy

Issuance Date
11 September 2017

Effective Date
11 September 2017

Applicability
FSA, IFSA

Summary
Bank Negara Malaysia (BNM) today issues the Supplementary Notice (No.3) on Foreign Exchange Administration Rules - Measures to Promote Development of Malaysian Financial Market (Supplementary Notice No.3) that sets out the additional hedging flexibility to further facilitate foreign exchange risk management as follows:

• Forward Hedge of Crude Palm Oil Futures (FCPO) and Options on Crude Palm Oil Futures (OCPO) for Non-bank Non-resident Market Participants*

* Upon registration with BNM for the purpose of managing MYR exposure arising from MYR-denominated FCPO and OCPO contracts undertaken with Bursa Malaysia Berhad.

Details can be found in the following:

• Supplementary Notice 3
• Forward Hedge of FCPO / OCPO Form – Non-bank Non-resident Market Participants (PDF File)
• Forward Hedge of FCPO / OCPO Form – Non-bank Non-resident Market Participants