Banks in Singapore is likely to give up their reference rate, the Malaysian ringgit, a person's knowledge of the matter told Reuters news agency reported that Malaysia's central bank, because it is designed to control and deepen its onshore currency market to a victory.
Singapore's foreign exchange market to change, because the pressure regulator, a global scandal, bankers manipulating key lending rate, under the stimulus of last autumn, ordered a review the city-state's banking association through the different rate.
Probe found some pricing interest rate, currency traders manipulate Singapore in Malaysia and Indonesia's central bank governor, over the years has maintained on the basis of their own spot currency market, the influence of foreign speculation driven by anger.
Association of Banks in Singapore, this is to develop a reform, to improve its speed setting integrity, is expected to pass a plan that would put an end to that spot prices to solve daily publication of derivatives contracts, sources said, professional bank directly to know who don't want to be named after the program is not open.
A spokesman for the association of Banks in Singapore, declined to comment. The monetary authority of Singapore to provide any comments. Malaysia's central bank, the national bank, also declined to comment.
How to reform the system is still under discussion, there is no final decision whether to stop the ringgit currency, involved in the process of a few bankers told Reuters.
Ringgit currency downward pressure, even consider sea Singapore faces from its neighbors and the impact of greater transparency, promote global regulation of otc derivatives.
The association did not show any moves towards the end of the Singapore's tax rate is fixed as the Indonesian rupiah, market participants said that without a reliable spot reference rate compared to reference rate in Malaysia, that on its own.
Fixed in the past two years, Singapore has quoted the Indonesian rupee against the dollar is weaker than onshore rate in interest rates, wider spreads, in the beginning of the year for 250 rupees. Ringgit fixed price gap between the price of the land and sea are usually close to zero.
The BOOST in Malaysia
Derivatives pricing, known as nondeliverable forwards (non-deliverable forwards () the reference rate, firms, investors and traders seek to hedge currency risk capital controls, restrictions on foreign capital.
Ringgit, according to people familiar with the matter as the Singapore exchange rate, bank trading ringgit non-deliverable forwards will be announced on Malaysia's foreign trade association of the benchmark.
Suresh ramanathan frank, regional and CIMB, Malaysia's second-biggest bank (CIMB. KL) foreign exchange strategists said, in the property market in Malaysia, it has largely covers the Philippines and Indonesia in the last few months change will generate more interest.
"We'll see greater depth and liquidity of the Malaysian ringgit market of the land, in the region rely on reducing NDF, ramanathan told Reuters."
"We have the question to ask is how to fixed land smooth transition from the sea. And the central bank to get the ball rolling asked local Banks to use the land for fixed in January."
Malaysia's capital inflows more than doubled, to 5.92 billion ringgit ($1.902 billion), by the end of 2012, the central bank, according to data released from this year's money to seek growth in southeast Asia, is one of the fastest growing regions in the world.
Vested interests
Relying on land in Malaysia ringgit prices will decline the ideal solution - a benchmark, according to the real deal - but it would be better than the offshore model, said Joseph cherry Ann, research and investment management at nus in asset management, the director of the center school in Singapore.
"When vested interests, such as foreign makers to set the reference rate, is the interest rate or foreign exchange, and have their own profits and losses - and by extension, their compensation - decided to interest rates, high temptation to always do the wrong thing." He said.
The NDF market in Singapore is the world's largest may reach tens of billions of dollars, the turnover every day. Most trade is in the Indian rupee, the reserve bank of India reference interest rate supervision, and currencies in southeast Asia.
Some central Banks, including Indonesia, have long complained that, NDF traders speculation, gained currency at the spot exchange rate fluctuations.
To determine the daily reference rate for the currency ringgit, the Singapore 15 Banks to submit panel at the spot exchange rate in each trading day. Fixed to the contribution of Banks, then submitted to the top and bottom of the quarterly average.
Reuters and Thomson Reuters, the parents association of Banks in Singapore, ACTS as the agent to collect and calculate price. Used in interbank lending rates in Singapore and other financial centers around the world a similar process.
Rate is set by local confidence in the credibility of a vote on land in Malaysia rate, Banks are reluctant to continue to participate in the development of the offshore rate process, has become a signal in the midst of a controversy.
This also reflects the regulators to blow down after the fixed rate system, last year's scandal over set the benchmark London interbank offered rate offer rate (LIBOR), in line with the global transaction manipulation loans every day and more than $600 trillion in securities assets.
For the London interbank offered rate in London review Suggestions, to reduce the benchmark interest rate, and screw down the rate-setting process supervision.
 



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