Bank Negara sets maximum spread for money changers

Bank Negara sets maximum spread for money changers

KUALA LUMPUR (Reuters): Malaysia's central bank, Bank Negara, said on Sunday it had set the maximum spread money changers could charge at two percent for major currencies.

"The maximum spread between buying and selling for major currencies i.e. U.S. dollar, Deutsche mark, Sterling pound, Japanese yen and Hong Kong dollar and Singapore dollar is two percent (plus or minus one percent from the middle rate)," Bank Negara said in a statement.

The spread for all other currencies has been set at three percent, or 1.5 percent either side of the middle rate, Bank Negara said.

"The middle rate for U.S. dollars is the exchange rate quoted by Bank Negara," Bank Negara said.

The bank recently fixed the exchange rate of the ringgit at 3.80 per U.S. dollar as part of exchange control measures.

"The middle rate for all other currencies against the ringgit would be the cross-rates determined based on the U.S. dollar exchange rate against all the other currencies," the central bank said.

Licensed money changers would have to set their buying rate at not less than 3.7620 per dollar, and their selling rate at no more than 3.8384 per dollar, Bank Negara said.

Customers would be issued with official receipts for all money changing transactions done with money changers, Bank Negara said.

"Bank Negara will revoke the licenses issued to money changers if they fail to comply with the above rules, found to be hoarding foreign currencies, or refusing to sell to customers at the specified exchange rates. Arrangements for adequate supply of foreign currency notes have also been made."