KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Bank Negara Malaysia (BNM) is refining a proposal from the Reserve Bank of India (RBI) to establish a Local Currency Settlement Framework (LCSF) aimed at increasing the use of the ringgit and Indian rupee in bilateral trade, according to the Ministry of Investment, Trade, and Industry (Miti). Key Benefits of LCSF Reduced reliance on the US dollar in trade transactions. Lower transaction costs , leading to competitive pricing of goods. Enhanced bilateral trade opportunities for entrepreneurs and investors in Malaysia and India. Progress and Impact The share of bilateral trade settled in ringgit and rupees rose from 4.4% in 2022 to 4.8% in 2023 , per BNM data. India International Bank Malaysia became the first local bank to adopt the mechanism, using a Special Rupee Vostro Account with Union Bank of India. Implementation and Encouragement Malaysian businesses can settle trade in rupees , while Indian firms are encouraged to use the ringgit via BNM-appointed offices in India. This a...