KUALA LUMPUR: Short-term rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity in the cash market.
For the week just ended, the overnight Islamic reference rate remained unchanged at 2.72%, while the one-, two- and three-week rates stayed at 2.79%, 2.83% and 2.88%, 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, Islamic range maturity auction (iRMA) Qard tenders and Qard tenders.
The central bank also conducted commodity murabahah programmes (CMPs) and a Bank Negara Interbank Bills.
The total liquidity surplus in the conventional system for the week increased to RM18.20 bil from RM16.74 last Friday, while in the Islamic system, it slipped to RM10.20 bil from RM12.0 bil previously. – Feb 22, 2020,
