Bank Negara launches new alternative reference rate

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Bank Negara has launch Malaysia Overnight Rate as an alternative reference rate.

The introduction of ARRs was aimed to facilitate usage of benchmark rates that are more robust and based upon transactions in active, liquid markets. the central bank said in a statement yesterday.

Globally, ARRs are being introduced to improve the integrity of financial benchmark rates as part of a transition to transaction-based rates, in line with the London Interbank Offered Rate reforms after the global financial crisis. > The MYOR will be administered and calculated by Bank Negara as the volume- weighted average rate of unsecured overnight ringgit interbank transactions, including the Bank Negara’s overnight monetary operations

 

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