Bank Negara Malaysia

Bank Negara Malaysia (BNM; literally National Bank of Malaysia, officially Central Bank of Malaysia) is the Malaysian central bank. Established on 26 January 1959 as the Bank Negara Malaya, its main purpose is to issue currency, act as banker and adviser to the Government of Malaysia and regulate the country's financial institutions, credit system and monetary policy. Its headquarters is located in Kuala Lumpur, the federal capital of Malaysia.

The bank is active in developing financial inclusion policy and is an important member of the Alliance for Financial Inclusion.

The institution co-hosted the AFI Global Policy Forum (GPF) in 2013 in Kuala Lumpur, Malaysia.

History

In 1837 the Indian rupee was made the sole official currency in the Straits Settlements, but in 1867 silver dollars were again legal tender. In 1903 the Straits dollar, pegged at two shillings and fourpence (2s. 4d.), was introduced by the Board of Commissioners of Currency and private banks were prevented from issuing notes. Since then, the continuity of the currency has been broken twice, first by the Japanese occupation 1942 – 1945, and again by the devaluation of the Pound Sterling in 1967 when notes of the Board of Commissioners of Currency of Malaya and British Borneo lost 15% of their value.