KUALA LUMPUR, April 2 ― 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, a dealer said.
For the week just ended, BNM intervened on a daily basis to absorb excess funds by conducting money market range maturity auction tenders, conventional money market tenders, Qard, Islamic range maturity auction Qard, repo and Commodity Murabahah Programmes.
Yesterday, the central bank's action helped reduce the market's total liquidity surplus to RM32.03 billion from RM29.53 billion earlier, while in the Islamic system, it slipped to RM11.22 billion versus RM11.41 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.
Meanwhile, the benchmark three-month interbank rate was pegged at 3.71 per cent. ― Bernama
