KUALA LUMPUR, Jan 2 ― The Malaysian money market is expected to remain stable next week on Bank Negara Malaysia's (BNM) intervention to manage surplus liquidity.
The central bank is expected to continue the intervention with daily tenders to mop up excess funds from the market.
For the holiday-shortened week, BNM intervened daily to absorb excess funds by conducting conventional money market, Commodity Murabahah Programme, Qard and repo tenders.
The local market was closed on Friday for the New Year holiday.
On Thursday, the central bank's actions helped reduce the market's total liquidity surplus to RM37.92 billion in the conventional system and RM11.65 billion in Islamic funds.
The overnight Islamic reference rate stood at 3.21 per cent, while the one-, two- and three-week rates were pegged at 3.30 per cent, 3.35 per cent and 3.39 per cent, respectively.
Meanwhile, the benchmark three-month interbank rate stood at 3.84 per cent. ― Bernama
