In November last year, Bank Negara Malaysia (BNM) forced currency traders overseas to stop driving the ringgit lower and demanded that banks sign a commitment to cease trading the ringgit on the offshore non-deliverable forward (NDF) market.

The bank later added that the “disruptive influence” on the ringgit from the NDF market has subsided, and has introduced several measures to boost onshore ringgit trade.

“The recent introduction of the ringgit futures at the Singapore Stock Exchange (SGX) and the Intercontinental Exchange (ICE) or ICE Futures Singapore is inconsistent with Malaysia’s foreign exchange administration policy and rules,” BNM said today.

Offshore trading of the ringgit – either as NDFs traded in offshore financial centres or as a derivative contract on exchanges outside Malaysia – is against the Malaysian policy, it said.

The central bank spokeswoman declined to give further details and did not say if the central bank had given regulatory approval for such a contract.