Malaysia's Currency Crackdown is Hitting Speculators
- Focus now on bonds after crackdown triggered foreign flight
- While Malaysian NDF trade falters, other markets climb: EBS
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Malaysia is succeeding in snuffing out currency speculation -- now it has to deal with the fallout.
Offshore trading in ringgit non-deliverable forwards on EBS BrokerTec’s electronic platform has dropped by about 70 percent since policy makers took steps in November to deter foreign banks from trading the contracts. Now, officials are looking at easing rules on the short-selling of government debt after the crackdown saw global funds withdraw more than 35 billion ringgit ($8 billion) out of Malaysian sovereign bonds in the four months through February.