Bank Negara Opens Up Dynamic Hedging For Trust Banks Bank Negara is opening up a dynamic hedging programme for trust banks and global custodians on behalf of their clients effective immediately. Governor Nor Shamsiah Mohd Yunus said the initiative is part of the central bank's efforts to improve market efficiency, accessibility and liquidity in the domestic market, whilst preserving an orderly and transparent onshore market. “Dynamic hedging is similar to hedging on the non-deliverable forward (NDF) market, just that it is in the domestic market, and there’s more transparency compared to the offshore NDF market,” she told reporters at the first quarter 2019 economic performance briefing in Kuala Lumpur today. Shamsiah said that to facilitate the management of foreign exchange risk, registered institutional investors can enter into forward contracts to buy the ringgit beyond the current 25 percent of underlying assets threshold, upon approval by the central bank. “To