Malaysia Disagrees With IMF Over Currency Management, Once Again
- IMF says limits on offshore fx trading should be phased out
- Currency has gained 10% against dollar since clampdown
Photographer: Sanjit Das/Bloomberg
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Malaysia, which defied the advice of the International Monetary Fund during the Asian financial crisis two decades ago, is again disagreeing with the agency over how to manage its currency.
This time, it’s about a crackdown in the offshore trading market. In its annual Article IV report on Malaysia, the IMF said the measures contributed to capital outflows, while authorities say they succeeded in curbing volatility and improving the efficiency of the onshore market.