BNM Publishes Exposure Draft on New Malaysia Islamic Overnight Rate to be Launched in 2022

Bank Negara Malaysia (BNM) has issued an exposure draft on the new Malaysia Islamic Overnight Rate (MYOR-i), in anticipation for its official launch in 2022. The exposure draft was released on the 24th of September 2021 alongside the launch of the Malaysia Overnight Rate (MYOR) as the country’s new alternative reference rate.

Why it Matters?

The exposure draft outlines the benchmark design, methodology and governance framework of MYOR-i, which is a new Shariah-compliant transaction-based Islamic benchmark rate being developed by BNM to replace the existing Kuala Lumpur Islamic Reference Rate (KLIRR) by the first half of 2022. BNM’s Financial Markets Committee (FMC), in consultation with the Islamic Market Technical and Development Committ...