Emerging Markets Rates and Currencies Handbook

31 Citi | Emerging Markets Currencies Handbook 2021 Market opening hours and liquidity during the day 08.00 09 .00 12.00 14.00 16.00 18.00 Good Liquidity No Liquidity Moderate Liquidity Fixing Kuala Lumpur USD/MYR reference rate is published on Reuters MYRFIX2 at 3.30 local time, Monday to Friday except for bank holidays in Malaysia. Convertibility Buying and Selling of MYR A Resident is allowed to buy or sell Foreign Currency against Ringgit for its own account: • on Spot Basis with a Licensed Onshore Bank (LOB); or • on Forward Basis with a LOB, subject to the following: a. the transaction is undertaken on Firm Commitment or Anticipatory basis, and shall be terminated when the Firm Commitment ceases to exist or the anticipated transaction does not materialise; and b. where the transaction involves — i. underlying Foreign Currency-denominated derivatives contract (excluding Exchange Rate Derivatives) offered by a Resident, the value of the transaction shall not exceed the net open position of the Foreign Currency exposure arising from the derivatives contract; ii. buying of Foreign Currency against Ringgit, it shall not be for deposit into FCA except for temporary placement arising from delivery of Foreign Currency under the Forward Basis transaction due to extension of payment timeline of the Foreign Currency Firm Commitment or temporarily placed into the FCA for subsequent payment out on the same day; or iii. selling of Foreign Currency against Ringgit, the Foreign Currency shall not be sourced from FCA except for Foreign Currency proceeds received earlier than the maturity date of the Forward Basis transaction. * Resident is allowed to buy or sell Foreign Currency against Ringgit for its own account on spot basis or forward basis with a licensed onshore bank (LOB), for transaction undertaken on Firm Commitment or Anticipatory basis, and shall be terminated when the Firm Commitment ceases to exist or the anticipated transaction does not materialise. For FX hedging of FC obligations, a resident is free to sell ringgit against FC with a licensed onshore bank on – 1. spot basis up to the aggregate of its 6-month FC obligations; or 2. forward basis up to the underlying tenure of its FC obligations. Source: Citi indicative information FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 2,000 — 3,000 1,500 — 2,000 N/A N/A 250 — 300 N/A 5 — 10 Offshore volume (MM USD daily) N/A N/A N/A N/A N/A N/A N/A Onshore max tenor (or typical tenor for spot) T + 2 * Resident can sell MYR against foreign currency with licensed onshore bank up to underlying tenure of its foreign currency obligation * N/A Resident can sell MYR against foreign currency with licensed onshore bank up to underlying tenure of its foreign currency obligation * 10 years 10 years Resident can sell MYR against foreign currency with licensed onshore bank up to underlying tenure of its foreign currency obligation * Offshore max tenor (or typical tenor for spot) N/A N/A N/A N/A N/A N/A N/A Onshore typical deal size (MM USD) 2 — 4 5 — 10 N/A 5 — 10 5 — 10 5 — 10 5 — 10 Offshore typical deal size (MM USD) N/A N/A N/A N/A N/A N/A N/A CitiFX Pulse Capabilities Malaysia