Malaysia | BNM revises the Foreign Exchange Notices

On 15 April 2021, BNM revoked, and issued, revised Foreign Exchange Notices to reflect certain liberalisations that were announced on 31 March 2021.

The key changes has been summarised by BNM as follows:

• Notice 4 — Payment and Receipt which are
  - as resident exporters can settle domestic trade in goods and services in foreign currency with other residents involved in the global supply chain;
  - resident entities can pay or receive foreign currency to or from non-residents for settlement of foreign currency-denominated derivatives hedging (excluding exchange rate derivatives).

• Notice 5 — Securities and Financial Instruments
  - Licensed onshore banks can offer and transact ringgit-denominated interest rate or profit rate Islamic derivative with non-resident banks without any underlying commitment directly or through its Appointed Overseas Offices.
• Notice 7 — Export of Goods
  - Removal of export conversion requirement;
  - Resident exporters can offset or write-off export proceeds for any approved reason set out in Appendix B to Notice 7;
  - Resident exporters can expend the period for repatriation of export proceeds from six to 24 months in the circumstances set out in Appendix C to Notice 7.