KUALA LUMPUR, Feb 25 — The Malaysian financial markets continue to function efficiently with ample liquidity despite recent developments in the country, according to the Financial Markets Committee (FMC).
In a statement, it said the foreign exchange (FX) transaction volume remains healthy at US$14.6 billion (RM61.8 billion), supported by two-way flows, while the US dollar against ringgit (US$/MYR) one-month implied volatility remains within the normal range of 4.0-4.5 per cent.
“The US$/MYR opened higher and traded in an orderly manner throughout the day, in line with broad market expectations and consistent with the performance of regional currencies amid the global outbreak of Covid-19. The increased interest led to the US$/MYR interbank FX volume to double from last week’s average,” FMC said.
In the ringgit fixed income market, it said yield adjustments for the benchmark Malaysian Government Securities have been orderly, with the five-year and 10-year yield levels recovering from their initial upward movements.
The overall secondary bond market recorded a healthy daily trading volume of RM5.9 billion compared to daily average of RM4.7 billion in 2019.
Meanwhile, Financial Market Association of Malaysia (FMAM) president Chu Kok Wei said the orderly manner in which the ringgit FX and bond markets are functioning reflects the maturity of the Malaysian financial markets.
He added that there is sufficient liquidity to fulfil all stakeholders’ needs, as reflected in higher transaction volumes concluded.
“Financial markets continue to provide efficient intermediation of funds within the economy. FMC will continue to monitor developments in the financial markets to ensure that all business and transaction needs are met,” the committee said. — Bernama
