Bank Negara cuts reserve limits to ensure enough cash in circulation

March salaries will start to be paid out from today. — Reuters pic
March salaries will start to be paid out from today. — Reuters pic

KUALA LUMPUR, March 25 — Bank Negara Malaysia said it was ensuring the steady supply of ringgit in the market as part of its intervention during the country’s coronavirus disease (Covid-19) crisis.

The central bank said it was using tools available to it to ensure that individual financial institutions have sufficient daily liquidity.

“The Bank has also taken pre-emptive measures to boost liquidity through the recent reduction in Statutory Reserve Requirement (SRR) ratio by 100 basis points.

“Coupled with the additional SRR flexibilities granted to Principal Dealers, this has released approximately RM30 billion worth of liquidity into the banking system,” BNM said in a statement.

It said the measures would put around RM160 billion in circulation.

March salaries will start to be paid out from today.


 

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