Letters - BNM clarifies measure

THIS is with reference to "Facing up to ringgit fluctuations" (Policy Matters, Dec 15).
Non-deliverable forwards
Bank Negara Malaysia's move to prohibit facilitation of non-deliverable forward (NDF) related transactions is to reinforce existing rules that have been in place. As ringgit remains a non-internationalised currency, any offshore trading of NDF is not recognised.
This is not a capital control measure as it does not restrict the flow of investment funds. Malaysia's financial markets remain open to all market participants to facilitate their financial market transactions and capital flows arising from the real economic sectors, trade and investment activities.
Conversion of export proceeds
We would like to clarify that in relation to the new measure on foreign currency conversion, exporters are required to convert 75% of their export proceeds to ringgit and not "75% of profits Malaysian companies made in overseas ventures" as stated. In addition, exporters are also able to hedge and unhedge up to six months of their foreign currency obligation.
These measures are aimed to facilitate the rebalancing of demand and supply of foreign exchange. A deep and liquid onshore foreign exchange market will enable investors to better manage currency movements.
Bank Negara Malaysia