Bank Negara Malaysia Issues Guide to Exchange Control RulesWashington, DC, October 6, 1998 - Bank Negara Malaysia (BNM), the central bank of Malaysia, announced measures on September 1, 1998 that significantly restrict the rights of nonresidents with respect to transactions in Malaysian securities. On October 5, 1998, BNM issued a guide to the exchange control rules. The guide incorporates clarifications of the exchange control rules that have been issued by BNM since the rules went into effect. Most importantly, the guide makes clear that: - Prior to September 1, 1999, ringgit in the external account cannot be converted into foreign currency, unless such ringgit funds are derived from dividends, interest, rentals, commission, fees, and profits;
- After September 1, 1999, ringgit in the external account that has been invested in ringgit-denominated assets for more than one year can be freely converted into foreign currency; and
- During the one-year holding period, the type or form of ringgit asset may be changed without triggering a new holding period.
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