The announcement comes weeks after the central bank lowered the overnight policy rate by a quarter-point to 2.50%, to counter risks from the virus to an already slowing economy.
(Mar 17): Malaysia unexpectedly eased its reserve ratio as part of moves to release 30 billion ringgit ($9.9 billion) of liquidity into the banking system as the economy struggles through a lockdown to contain the coronavirus pandemic.
Bank Negara Malaysia cut the statutory reserve requirement ratio by 100 basis points to 2%, effective Friday. It will allow principal dealers to use government bonds and Islamic notes of up to 1 billion ringgit as part of reserve requirement compliance for the next year.
