Foreign Exchange Policy

Issuance Date
2 May 2017

Effective Date
2 May 2017

Applicability
FSA, IFSA

Summary
Bank Negara Malaysia today issues the Supplementary Notice (No. 2) on Foreign Exchange Administration Rules and Amendment to the Definitions of the Notices on Foreign Exchange Administration Rules - Measures to Promote Development of Malaysian Financial Market (Supplementary Notice No.2) that sets out the following:

1. Additional Hedging Flexibilities to Further Facilitate Foreign Exchange Risk Management
   1. Dynamic Hedging Framework for Institutional Investors*
   2. Hedging Framework for Corporate Entities*
   3. Hedging without documentary evidence
   ^{* Upon registration with Bank Negara Malaysia (BNM) for the purpose of managing currency exposure. In particular for item (b), unwinding of a forward contract when an underlying asset still exists is now allowed without additional approval from BNM.}
2. Amendment to the Definitions of the Notices on Foreign Exchange Administration Rules

Details can be found in the following:

• Supplementary Notice (No. 2)
• Forward Market Participation Form – Institutional Investors (PDF File)
• Forward Market Participation Form – Institutional Investors
• Forward Market Participation Form – Corporate Entities (PDF File)
• Forward Market Participation Form – Corporate Entities