Exchange Rates Bank Negara Malaysia Central Bank of ...

Malaysia, a nation who became a trader in the forex market

I just wanted to share what I've read. It made me realize that anything can happen in the forex market.
It was today that I learned that my country's central bank called Bank Negara was involved in forex trading back in 1992. It was all done by the bank Governor and also Finance Minister at that time. Basically the central bank and the government were in cahoots to make a profit trading in the forex market. I've read that they used Bank Negara employee computers as well as their own to execute their HUGE position. In the range of billions of dollars.
In the year 1992, they went into the market buying sterling pounds in hopes that they go up. During that time, the Bank of England (BOE) was in the European Exchange Rate Mechanism (ERM) and was basically playing the cat and mouse game and trying to one up the Deutsche Mark. This resulted in low interest rate and very high inflation in the UK.
Enter George Soros, a hedge fun manager at that time who saw that the pound was severely overvalued and decided to short it. His position was fairly large, in the range of tens of millions of dollars. Bank Negara was basically on the other end of that trade, in their mind there's no way some small hedge fund could bring down a CENTRAL BANK. So they kept their long position on the pound until Wednesday September 16th 1992 came when BOE had to pull the pound out of the ERM because of the financial pressure that had built up from within. This made the pound plummet and cemented two things in history. That day is known today as Black Wednesday and George Soros was crowned "The man who broke the Bank of England" by making a profit of US$1 billion in a single day.
As for Bank Negara? Investigations were conducted within my country and the estimated loss of that trade was around US$10 billion. In other words, a lot of our nation's money went into Soros' pocket. Bank Negara was also reported to be insolvent after that loss and had to be bailed out by our Ministry of Finance. They did that by selling shares of MAS (national airline company), Telekom (national telecommunications company) and Tenaga (national utilities company). MAS had been struggling in the airline industry ever since. Both the bank Governor and the Finance Minister were relieved of their duties.
The losses had since been recovered but the whole incident effectively pushed the advancement and development of the country by a few years. Bank Negara had stopped their trading for profits activities ever since and sticking to only regulating the money supply, as it was intended in the first place.
That's a piece of my country's history and how it was tied to the forex trading world and the rest of the world events. Thank you and hope you had a pleasure reading.
submitted by MushrifSaidin to Forex [link] [comments]

Message from BNM Governor MI

My dear colleagues,
No doubt many of you have read, listened or watched the news and social media coverage on the speculation of me vacating the Governor’s position. In fact, you were probably queried and asked by numerous family and friends on the validity of these reports.
This morning, I thought it is important that I speak to you candidly on this matter.
When I took office in May 2016, I vowed to execute the responsibility of the office of the Governor with the highest level of professionalism, integrity and honour. Over the past few weeks, there have been serious questions raised if I have fallen short of this standard and put at risk public confidence in the Bank.
As a central bank, we are only as effective as the trust and confidence that the people of Malaysia and its leaders place in us.
I am prepared to relinquish my post if I no longer have the strong trust and support of the public. I cannot in good conscience continue if it affects the Bank’s image and reputation.
We are judged by the decisions we make, like for example the recent purchase of Lot 41, acquired at RM850 per square foot, which has attracted wide public interest.
The perception is that the purchase of the land was made to intentionally aid and abet the misappropriation of public funds pertaining to the corruption and scandal surrounding 1MDB. This is totally untrue. Bank Negara Malaysia will never be party to any such activities that would betray the public trust in us. We abhor any semblance of corruption and abuse of power.
Skeptical as many may be, the Bank did not know nor did we have any control over the proceeds of the land purchase that would be used to settle 1MDB’s obligations. It is simply unthinkable for us to be associated with such a controversial entity mired with accusations of fraud and mismanagement. It is not in our nature to do such things. We even took enforcement action against them earlier.
The 1MDB scandal has cost the country dearly and as a Malaysian myself, I am deeply angered, distressed and outraged. This is indeed a matter of significant public focus and I can understand why any association with the scandal, unintended or otherwise, is invariably met with a strong sense of public outrage.
My priority now is for the Bank to move forward and continue to focus on delivering its mandates to serve the Malaysian people.
My dear colleagues,
The purchase of Lot 41 land was not the first time we have done such a transaction. As many of you would know, we have over the years, acquired several pieces of land throughout the country to enable the discharge of our mandates. Our own headquarters presently were built on three separate land acquisitions made in the 1950s and 1980s. The Bukit Perdana land, acquired in 2013 at the price of RM1,235 per square foot was also based on an independent professional valuer, upon which the ongoing construction of the Asian School of Business and the Financial Industry Training Centre are being done, are also the nearest examples.
We have also always wanted to create greater synergies between our numerous affiliated institutions and ensure talent development for the financial sector workforce. With this objective in mind, we indicated our interest as early as September of 2016. We initiated the purchase of the land a year later when we knew that there was an emergent interest by the Government then to sell this land. We believe that it was an excellent opportunity to secure an asset on fair terms that will be central to sustain our future long-term growth. We have a vision for a Financial Education Hub that will also host among others, a global Islamic finance university, a Shariah academy and research centre, a financial services library, innovation labs, a cybersecurity operations centre and an integrated security command centre.
We ensured that everything was done in the right manner, with proper governance and accountability, including compliance with all relevant laws. Internally, we deliberated this at a number of Board meetings. We even recommended to the Government for the sale to be best done by way of a public tender which we would be glad to participate competitively in along with any other interests. We also chose to publish a press release in January 2018 to inform the public of the purchase in our effort to be transparent.
Coming out fresh from the experience of a Royal Commission of Inquiry on forex losses of thirty-years past, the Bank was careful to make sure everything is above board. We knew that we need to pass the test of public scrutiny in everything we do to maintain our reputation and confidence of the public.
For more than 34 years, I have always strived to serve, to do my best in the interest of the country, its values and its people. The office of the Governor is a heavy responsibility with great capacity for good. It is also a privilege, as it entails working with possibly the best talents Malaysia has to offer. Malaysia is at a critical juncture in our history, it is important for us to stand united as an institution in rising to the occasion. The Malaysian people expect nothing less than our full dedication and commitment.
This institution is bigger than any individual, and I truly believe our best days are ahead of us. Let us draw courage, lessons and strength from this.
Thank you.
Regards,
Muhammad bin Ibrahim Governor
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Quickiepedia: The Ghost of Forex Past (Pt. 1) 'Without forex losses, Bank Negara would have RM100 billion more' 'Mahathir never entered BNM's forex dealing room' Ex-Bank Negara forex dealer traded billions of dollars a day KiniFlash - 30 Nov: RCI on forex losses pins blame on Nor Mohamed Yakcop Skandal Forex 1991, Kerajaan & Gabenor Bank Negara 1990-An Bertanggungjawab Former Bank Negara governor Zeti testifies at forex RCI

The ghost of the multi-billion ringgit Bank Negara forex speculation scandal, perhaps the largest financial scandal in Malaysian history, has returned with a vengeance to haunt the masterminds. I remember this mother of all banking scandals well. (It was rivalled in scale only by the non-performing loans crisis which hit our nation with the onset of the Asian financial crisis in the late 1990s ... The BNM foreign exchange scandal is one of the largest in Malaysian history. — Picture by Yusof Mat Isa. KUALA LUMPUR, June 22 — Over two decades after it first emerged, a Royal Commission of Inquiry (RCI) is finally being established to investigate the Bank Negara Malaysia (BNM) foreign exchange scandal. The losses from BNM’s forex trading, alleged to be more than US$10 billion (RM25 ... As Malaysia's Central Bank, Bank Negara Malaysia promotes monetary stability and financial stability conducive to the sustainable growth of the Malaysian economy. Jalan Dato' Onn, 50480 Kuala Lumpur, Malaysia; 1300 88 5465 (BNMTELELINK) +603 2698 8044 (General line) [email protected] The matter really blew up a year later when Bank Negara tabled its 1993 report and disclosed another forex loss of RM5.7 billion. Here is what Jaafar said: Here is what Jaafar said: “In the Bank’s 1993 accounts, a net deficiency in foreign exchange transactions of RM5.7 billion is reported, an amount which will be written off against the Bank’s future profits. Brief History of The Company; BNI Museum; Vision & Mission; Awards; Corporate Culture; Organization Structure; Commissioners; Directors ; Secretary of BoC; Corporate Secretary; Corporate Governance. Handbook & Policy; GMS; The Board of Commissioners; Patriot Acts Certification & AML; The Board; Whistle Blowing System (WBS) Code of Conduct; Articles of Association; GCG Reports. Annual GCG ... PUTRAJAYA: Former Bank Negara Malaysia (BNM) deputy governor Tan Sri Lin See Yan today admitted that the bank was in fact, covering up the massive losses made by speculative foreign exchange (forex) trading in the 1990s. P T Bank Negara Indonesia (Persero), Tbk (hereinafter “BNI” or the “Bank” or the “Company”) was originally established in Indonesia as a central Bank under the name of “Bank Negara Indonesia” based on Government Regulation in Lieu of Law No. 2 of 1946 dated July 5, 1946. Subsequently, pursuant to Law No. 17 In 1968, BNI became “Bank Negara Indonesia 1946”, with the status ...

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Quickiepedia: The Ghost of Forex Past (Pt. 1)

In the latest development from the Royal Commission of Inquiry (RCI) into Bank Negara's forex losses in the late 1990s, former BNKM Forex Dealer Azman Mat Ali said that the then Prime Minister Dr ... A former foreign exchange dealer with Bank Negara has claimed that he had traded billions of dollars a day under the instructions of the then chief dealer, former Bank Negara advisor Nor Mohamed ... Former Bank Negara governor Zeti Akhtar Aziz will testify today at the Royal Commission of Inquiry (RCI) into the central bank's forex losses in the 1990s, while former advisor Nor Mohamed Yakcop ... Bank Negara Malaysia's (BNM) US$10 billion foreign exchange losses incurred in the 1990s have had a huge impact on its foreign reserves today, claimed a former assistant governor of the central ... Skandal Forex 90an - Anwar Ibrahim ... 'Kerana forex, saya juga berundur dari Bank Negara' - Duration: 0:50. KiniTV 8,396 views. 0:50 . Victor Davis Hanson on “The Case For Trump” - Duration ... The Royal Commission of Inquiry into Bank Negara’s forex losses released its report today revealing losses amounting to 31.5 billion ringgit in foreign exchange trading between 1992 and 1994. A quarter of a century ago, Bank Negara Malaysia sustained losses in the billions after what is believed to have been forex investments that went terribly wrong. Now with modern technology at our ...

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