Bank Negara Malaysia wishes to announce that the Statutory Reserve Requirement (SRR) Ratio will be lowered by 100 basis points from 3.00% to 2.00% effective 20 March 2020. In addition, each Principal Dealer is able to recognise MGS and MGII of up to RM1 billion as part of the SRR compliance. This flexibility to the Principal Dealers is available until 31 March 2021. These combined measures will release approximately RM30 billion worth of liquidity into the banking system.

The SRR is an instrument to manage liquidity and is not a signal on the stance of monetary policy. The Overnight Policy Rate (OPR) is the sole indicator used to signal the stance of monetary policy, and is announced through the Monetary Policy Statement released after the Monetary Policy Committee meeting.