KUALA LUMPUR, April 9 — The Malaysian money market will likely remain stable next week, with Bank Negara Malaysia (BNM) continuing to intervene to manage surplus liquidity.
A dealer said the central bank is expected to conduct daily tenders to reduce excess liquidity in the financial market.
For the week just ended, BNM intervened on a daily basis to absorb excess funds by conducting 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 RM28.695 billion from RM34.085 billion earlier, while in the Islamic system, it reduced to RM5.201 billion from RM8.097 billion previously.
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.
The benchmark three-month interbank rate was lower at 3.70 per cent from 3.71 per cent the previous Friday. — Bernama
