Forwards become Malaysia’s favoured tool for boosting the ringgit

MALAYSIA’S central bank has been increasingly using currency forwards to support the ringgit, easing pressure on its foreign-exchange reserves.

Bank Negara Malaysia’s net forward FX position widened to negative US$27.7 billion in April – reflecting a record net short position its the forward books – showing a preference for using that avenue to bolster its currency. At the same time,…