Emerging Markets Rates and Currencies Handbook

Malaysia (MYR - Malaysian Ringgit) Citi in Malaysia Citi’s presence in Malaysia dates back to July 1959, serving both consumer and corporate clients. Citi Malaysia is a market leader in credit cards, holding the largest market share in sales volume (usage) and receivables, and has a dominant share in wealth management. Effective 1 November 2022, Citi has divested the consumer business. Within the corporate sphere, Citi Malaysia banks with 95% of target market top tier local companies and multinationals in the country. Citi is a leading foreign owned bank for corporate FX, cross border cash management, e-payments and institutional investor transactions. RAM Ratings has reaffirmed Citibank Berhad AAA rating status as of 30 Nov 2022 (Source: RAM Ratings, 30 Nov 2022). Market Overview Bank Negara Malaysia (BNM), the central bank of Malaysia maintains the Malaysian Ringgit (MYR) under a managed floating regime. While the MYR is not convertible outside of Malaysia, the authorities have over the years provided greater flexibility to improve business efficiency and enhance corporates’ FX risk management. BNM monitors the exchange rate against a currency basket to ensure that the exchange rate remains close to its fair value. MYR is a non-internationalized currency, thus any offshore trading of MYR such as MYR non- deliverable forwards (NDF) is not recognized. 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— 34