Central Bank of Malaysia Act 2009 s 26

s 26 Conduct of monetary policy operations

(1) The Bank shall conduct monetary policy operations to implement the decisions of the Monetary Policy Committee. (2) For the purpose of conducting monetary policy operations, the Bank— (a) may issue securities in its own name provided that the total amount of securities issued shall not at any time exceed the amount of the foreign reserves; (b) may purchase, sell and redeem securities issued by the Bank pursuant to paragraph (a); (c) may require a reserve to be held at the Bank by each financial institution; (d) shall have the powers set out in section 75, in particular paragraphs (c), (d), (e), (f), (g), (h), (i) and (l); and (e) may undertake such other financial transactions involving currencies, securities, precious metals or other commodities or financial instruments as approved by the Monetary Policy Committee. (3) The terms and conditions of a requirement under paragraph (2)(c) may include— (a) the principles and method for the determination of reserve; (b) the penalty which shall not exceed one-tenth of one per centum of the amount of the deficiency for every day during which the deficiency continues or other sanctions for any non-compliance with the requirement; (c) in the case of— (i) an Islamic financial institution, the returns which may be given; or (ii) any other financial institution, the interest which may be paid, by the Bank on the reserve.

Malay text (authoritative)

Penjalanan operasi dasar monetari

(1) Bank hendaklah menjalankan operasi dasar monetari untuk melaksanakan keputusan Jawatankuasa Dasar Monetari. (2) Bagi maksud menjalankan operasi dasar monetari, Bank— (a) boleh menerbitkan sekuriti atas namanya sendiri dengan syarat bahawa amaun keseluruhan sekuriti yang diterbitkan tidak boleh pada bila-bila masa melebihi amaun rizab luar negara; (b) boleh membeli, menjual dan menebus sekuriti yang diterbitkan oleh Bank menurut perenggan (a); (c) boleh menghendaki suatu rizab disimpan di Bank oleh setiap institusi kewangan; (d) hendaklah mempunyai kuasa yang dinyatakan dalam seksyen 75, khususnya perenggan (c), (d), (e), (f), (g), (h), (i) dan (l); dan (e) boleh menjalankan apa-apa transaksi kewangan lain yang melibatkan mata wang, sekuriti, logam berharga atau apa-apa komoditi atau instrumen kewangan lain yang diluluskan oleh Jawatankuasa Dasar Monetari. (3) Terma dan syarat bagi kehendak di bawah perenggan (2)(c) boleh termasuk— (a) prinsip dan kaedah bagi penentuan rizab; (b) penalti yang tidak boleh melebihi satu per sepuluh daripada satu peratus amaun yang kurang itu bagi tiap-tiap hari kekurangan itu berterusan atau sanksi lain bagi apa-apa ketidakpatuhan kehendak itu; (c) dalam hal— (i) suatu institusi kewangan Islam, pulangan yang boleh diberikan; atau (ii) mana-mana institusi kewangan lain, faedah yang boleh dibayar, oleh Bank atas rizab itu.

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Find Act 701 on lom.agc.gov.my ↗

Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).

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