A former foreign exchange dealer at Bank Negara Malaysia has admitted that he once dealt up to US$800 million a day in forex trading under the instructions of the then Bank Negara assistant governor Nor Mohamed Yakcop.
Fizaman Noor Mohammed Nasir, however, said the dealing was done under a management position. Fizaman worked as a forex dealer at the central bank’s banking department between 1989 and 1998.
At the Royal Commission of Inquiry (RCI) proceedings into Bank Negara’s forex losses, conducting officer Suhaimi Ibrahim thereafter asked Fizaman how he could exceed the forex trading limit with the US$800 million deal.
“The US$30 million limit is for the dealer position. The US$800 million deal was for the management position, under Nor Mohamed’s instructions,” Fizaman explained.
“Without instructions, we, dealers, would play by our own rules.”
Under a management position, dealers have no right to refuse to engage in a particular deal, he added.
Suhaimi, meanwhile, pointed out how Fizaman had admitted that losses were incurred during the dealings.
“If you knew there were many losses, why were there no discussions (to overcome the problem)?” asked Suhaimi.
Fizaman, however, said that a dealer could merely provide his or her views.
“We try to advise through economic sense and on how things can improve.
“(But) what’s decided after that, is not our task. Even if the market view is negative, the ultimate decision is made by Nor Mohamed,” he said.