Short-term rates to remain stable on BNM’s operations


KUALA LUMPUR – Short-term rates are expected to remain stable on Monday on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the financial system.

The liquidity is estimated at RM40.52 billion in the conventional system and RM19.98 billion in Islamic funds.

BNM will conduct three conventional money market tenders comprising RM2 billion each for seven days and 14 days, and a RM1 billion tender for 31 days.

It will also conduct a RM100 million repo tender for 31 days and a RM2 billion Islamic Range Maturity (iRMA) Qard tender for seven to 31 days.

The central bank also announced the availability of reverse repo, sale and buy-back agreement (SBBA), and collateralised commodity Murabahah (CCM) facilities for tenors of one to three months.

At 4pm, BNM will conduct up to RM34.40 billion conventional overnight tender and RM17.0 billion for Murabahah overnight tender.

BNM reserves the right to reject bank’s bids for overnight tender if liquidity position is not reported before 4pm.