SHORT-term rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the cash market.
For the week just ended, the overnight Islamic reference rate settled at 2.48%, while the one-, two- and three-week rates finished the week at 2.53%, 2.58% and 2.63%, respectively.
Throughout the week, BNM intervened on a daily basis to reduce excess funds from the financial system by conducting tenders, including conventional money market tenders, Murabahah money market tenders, Qard tenders and reverse repo tender.
The total liquidity surplus in the conventional system for the week increased to RM42.29 bil from RM19.37 bil last Friday, while in the Islamic system, it rose to RM25.27 bil compared with RM8.8 bil last week. – March 21, 2020, Bernama