E X C H A N G E P O L I C Y ( F E P ) R E F I N E M E N T ... · E x p o r t e r s c a n retain...

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REFINEMENT IN THE FOREIGN EXCHANGE POLICY (FEP) Improve business efficiency Enhance corporates' FX risk management providing greater flexibility to:

Transcript of E X C H A N G E P O L I C Y ( F E P ) R E F I N E M E N T ... · E x p o r t e r s c a n retain...

Page 1: E X C H A N G E P O L I C Y ( F E P ) R E F I N E M E N T ... · E x p o r t e r s c a n retain 100% of export proceeds of RM200,000 and below per transaction in foreign currency

REFINEMENT IN THE FOREIGNEXCHANGE POLICY (FEP)

Improve businessefficiency

Enhance corporates' FX risk management

providing greater flexibility to:

Page 2: E X C H A N G E P O L I C Y ( F E P ) R E F I N E M E N T ... · E x p o r t e r s c a n retain 100% of export proceeds of RM200,000 and below per transaction in foreign currency

Exporters can

retain 100% of export proceeds of RM200,000 andbelow per transaction in foreign currency

How does this help?

This eases the administrative burdens ofthe exporters, especially SMEs, to meet their

foreign currency obligations

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Residents canhedge foreigncurrency loan

obligations up to underlying

tenure

MANAGEFX RISKBETTER

CORPORATES CAN

Residents and non-residents can

cancel theirhedging positions*

in response tochanging market

conditions

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*except hedges for portfolio investment

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OPERATIONS

CORPORATES CAN

Residents can freely

obtain financialguarantee fromnon-residents

e.g. parentcompanies

Residentscan freely

issue financialguarantee* to non-residents

e.g. subsidiariesabroad

*except certain financial guarantees that are subjectedto external borrowing and investment abroad rules

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SUPPORTGLOBAL

BETTER

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These measures are effectiveimmediately on 30 April 2020

For further details, visit https://bnm.my/fep