Money
Malaysia’s central bank mops up excess cash to stabilise market
Bank Negara Malaysia is expected to continue operations to absorb excess liquidity from the financial system. — File picture by Hari Anggara

KUALA LUMPUR, Aug 30 — Short-term interbank rates are expected to remain stable next week, supported by Bank Negara Malaysia’s (BNM) continued operations to absorb excess liquidity from the financial system.

This week, the central bank intervened daily by conducting reverse repo tenders, Islamic reverse repo tenders and an overnight reverse repo tender to mop up excess funds.

On a weekly basis, surplus liquidity in the conventional system was unchanged at RM24.40 billion on Friday compared with the previous week, while in the Islamic system, it fell to RM15.60 billion from RM21.60 billion.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at 2.75 per cent as at Aug 28, 2025. — Bernama

 

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