Malaysia's central bank extends maximum tenor of repo to 5 years

This expands the previous deadline of only one year.

Bank Negara Malaysia has extended the maximum tenor of repurchase agreements (repo) to 5 years from only 365 days previously.

In a policy document, Malaysia’s central bank said that the extension applies to transactions involving both ringgit and non-ringgit repo, and reverse repo transactions including any outright sale or purchase of repo securities with the intention to resell them later.

A repo refers to a short-term borrowing for dealers in government securities.