# Foreign banks shaken by Malaysia's move to halt currency slide

> Foreign banks in Malaysia are working out how to comply with the central bank's clampdown on offshore ringgit trading. Onshore banks have sent letters asking offshore counterparts to commit to ceasing ringgit NDF trading. The ringgit fell to an 11-month low of 4.3850 per dollar, and the 10-year bond yield rose about 17 basis points.

- Date: 2016-11-18 · published 2016-11-18T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/74109-foreign-banks-shaken-by-malaysia-s-move-to-halt-currency-slide
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

The move acts as an indirect capital control that can weaken the ringgit and reduce foreign participation in Malaysian assets, which affects the dollar cost of Malaysian palm oil and related commodity trade.

## Read by commodity

- USDMYR: bullish ▲

## Sources

- cnbc.com: https://www.cnbc.com/2016/11/17/foreign-banks-shaken-by-malaysias-move-to-halt-currency-slide.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.