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BNM Liberalises FX Policy, Releases Regular Reports

MYR

USD/MYR has ground higher and last trades +72 pips at MYR4.1578, a fresh five-month high, digesting the latest round of BNM headlines.

  • Bank Negara released several of its regular publications today:
    • In the annual Economic and Monetary Review, BNM revised its 2021 GDP forecast to +6.0-7.5% Y/Y from +6.5-7.5%. Growth will be anchored by private consumption, but lifted by m'fing & commodities.
    • In the Annual Report, BNM said that its total assets amounted to MYR488bn, with a net profit of MYR10.2bn in FY2020.
    • In the biannual Financial Stability Review, BNM said that "the financial system continues to be in a strong position to support the economic recovery, with strong capitalisation levels to absorb potential credit losses and ample liquidity to facilitate financial intermediation activity."
  • In addition, BNM announced a package of measures to further liberalise of the FX regimeand attract FDI.
  • Worth noting that the ringgit is vulnerable to oil weakness seen ahead of the upcoming OPEC+ summit. Palm oil futures (M1) slid in sync with Brent & WTI yesterday, after charting a double top pattern.

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