KUALA LUMPUR Dec 28 The Malaysian central bank
said on Wednesday that the "disruptive influence" from the
non-deliverable forward (NDF) market on the ringgit has
subsided, making a success of its efforts to stifle the offshore
Last month, Bank Negara Malaysia began trying to force
currency traders overseas to stop driving the ringgit lower and
demanded that banks sign a commitment to cease trading the
ringgit on the offshore NDF market. It also said it would
implement several measures to boost onshore ringgit trade.
Liquidity on the onshore foreign exchange market registered
a daily average volume of around $9 billion this month, compared
to a monthly average of $8 billion in the previous 11 months,
Bank Negara Malaysia said in a statement on Wednesday.
"FX flows comprise supply and demand from all major
participants, including the exporters/importers, portfolio
related and direct investments," the central bank said.
(Reporting by A. Ananthalakshmi)