Malaysia’s onshore FX market remains healthy, daily turnover rises to US$21.3 billion

KUALA LUMPUR: Malaysia’s onshore foreign exchange (FX) market remains healthy, with the average daily FX turnover rising to US$21.3 billion as of June this year, as compared with US$19.8 billion in 2025, according to Bank Negara Malaysia’s (BNM) Financial Markets Committee (FMC). BNM said the increase in the turnover was driven by balanced two-way flows, with corporate FX activities remaining consistent with general expectations. The central bank today issued a statement following FMC’s meeting on Tuesday to discuss recent developments in the ringgit FX market. “Looking ahead, external developments, as well as domestic factors, are expected to continue driving the ringgit performance, but Malaysia’s solid economic profile will help to provide enduring support to the ringgit,” it said. In the meeting, BNM reiterated that it will continue to closely monitor developments in the financial markets and reaffirm its commitment to ensuring orderly market conditions. “Ongoing measures to encourage inflows like the qualified resident investor programme as well as engagements with government-linked companies, government-linked investment companies and corporates to repatriate and convert their income, remain ongoing and will be intensified,” it said. It also said that recent movements of the ringgit and regional currencies continue to be driven by global developments. “While geopolitical uncertainties have partially eased following an interim peace deal signed by the United States and Iran, global financial markets remained focused towards prospects of higher policy rates in the US amid elevated inflation risks,” it said. BNM highlighted that FMC members agreed that Malaysia’s favourable macroeconomic fundamentals remain intact, as reflected in positive indicators such as the stronger-than-expected trade data and stable inflation.