SHORT-term rates are set 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 stood at 2.47%, while the one-, two- and three-week rates finished the week at 2.54%, 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 various tenders, namely conventional money market tenders, Qard tenders and reverse repo tenders.
The central bank also announced the availability of the reverse repo, sale and buy-back agreement transaction and collateralised commodity Murabahah transaction facilities.
The total liquidity surplus in the conventional system for the week decreased to RM40.01 bil from RM44.61 bil the previous week, while in the Islamic system, it rose to 31.03 bil from RM24.03 bil.
The market was closed yesterday for Labour Day. – May 2, 2020, Bernama.
