KUALA LUMPUR, March 19 — The Malaysian money market is expected to remain stable next week, with Bank Negara Malaysia (BNM) continuing to intervene to manage surplus liquidity.

The central bank is expected to conduct daily tenders to reduce excess liquidity in the financial market, said a dealer.

For the week just ended, BNM intervened on a daily basis to absorb excess funds by conducting range maturity auction, money market tenders, conventional money market tenders, Qard, repo and reverse repo tenders.

On Friday, the central bank’s action helped reduce the market’s total liquidity surplus to RM35.36 billion from RM42.80 billion earlier, while in the Islamic system, it shrank to RM5.44 billion from RM10.50 billion.

The overnight rate stood at 3.21 per cent while the one-, two- and three-week rates were at 3.30 per cent, 3.35 per cent and 3.39 per cent respectively.

The benchmark three-month interbank rate was pegged at 3.71 per cent. — Bernama