PUTRAJAYA, Aug 24 — A former currency dealer told a royal inquiry that he traded as much as US$800 million a day in the 1990s when Bank Negara Malaysia allegedly lost billions in the foreign exchange market.

Fizaman Noor Mohammad also testified at the Royal Commission of Inquiry that he did so on the orders of Tan Sri Nor Mohamed Yakcop, who was then assistant governor of the central bank.

He added that he was able to trade well above the US$30 million cap for regular traders as he was allowed to use a "management position”.

"Without instructions, we dealers would play by our own rules," Fizaman said.

"The highest dealing in management position that I have done in a day was up to US$800 million," Fizaman said.

He also asserted that the central bank did not book any profits from the currency market despite the massive exposure.

When asked by conducting officer Datuk Suhaimi Ibrahim why he did not notify superiors about the scale of his currency trading, Fizaman said dealers could only give views and had no power to act.

"We try to advise through economic sense and on how things can improve.

"(But) what's decided after that, is not our task. Even if the market view is negative, the ultimate decision is made by Nor Mohamed," he said.

The RCI is investigating allegations that BNM lost billions of ringgit in foreign exchange dealings in the 1990s and its impact on the country’s economy, and must submit its report to the Yang di-Pertuan Agong by October 13.