27 minutes
KUALA LUMPUR: Bank Negara Malaysia (BNM) has announced further liberalisation of the foreign exchange administration (FEA) policy with new measures effective Aug 30, 2019 aimed at providing greater flexibility and efficiency for businesses to manage their foreign exchange risk and conduct their daily operations.
Firstly, residents can hedge their foreign currency current account obligations up to their underlying tenure, compared with up to 12 months previously.
Secondly, resident treasury centres can hedge on behalf of their related entities, while non-resident treasury centres can hedge on behalf of their related entities upon a one-time registration with BNM, compared with required approval previously.
Thirdly, non-residents can hedge on anticipatory basis, compared with required approval previously.
Fourthly, BNM has also revised the definition of domestic ringgit borrowing by exempting credit facilities for miscellaneous expenses.
