KUALA LUMPUR, July 9 ― The Malaysian money market is likely to remain stable next week on Bank Negara Malaysia's (BNM) intervention to absorb excess liquidity from the financial system.

The central bank is expected to conduct daily tenders to reduce excess liquidity from the financial market.

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

Yesterday, BNM's action helped reduce the market's liquidity surplus in the conventional system to RM26.93 billion from RM31.87 billion earlier.

The market liquidity in the Islamic system fell to RM7.22 billion from RM11.28 billion, previously.

The overnight Islamic reference rate ended the week one per cent higher at 3.21 per cent, while the one-week, two and three-week rates stood at 3.31 per cent, 3.35 per cent and 3.39 per cent, respectively.

Meanwhile, the benchmark three-month interbank rate stood at 3.65 per cent. ― Bernama