IN MAJOR BLOW TO NAJIB, KEY MAN NOR MOHAMED TELLS IT AS IT WAS : ‘I MISREAD THE MARKET. THE FOREX LOSSES HAPPENED, THERE IS NO DENYING… BUT I NEVER DISCUSSED THEM WITH DR M OR ANWAR & LATER ON, LESSONS FROM THE LOSSES SAVED MALAYSIA FROM LOSING HUNDREDS OF BILLIONS IN 1997 ASIAN CRISIS

Former Bank Negara advisor Nor Mohamed Yakcop said he accepted his fair share of accountability over the foreign exchange (forex) losses incurred in the late 1980s and early 1990s.

Testifying before the Royal Commission of Inquiry (RCI) tasked with probing the losses, he also stated that he never discussed the forex transactions in the years between 1986 to 1993 with both then finance minister Anwar Ibrahim and prime minister Dr Mahathir Mohamad.

“The forex losses happened, there is no denying it. There is also no denying my accountability for the forex losses. I accepted my fair share of the accountability and resigned from Bank Negara.

During last week’s RCI hearing, former Bank Negara deputy governor Lin See Yan had confirmed that Nor Mohamed was then the chief dealer in the forex transactions and had reported directly to then governor Jaffar Hussein.

Lin said he had told Jaffar that Nor Mohamed should not be allowed to deal anymore.

This was following internal investigations which found that Bank Negara had large open forward positions in multiple currencies.

Lessons from forex losses became shield in Asian financial crisis later

MEANWHILE, according to The Malay Mail:

PUTRAJAYA— Bank Negara Malaysia (BNM) paid a steep price for trading in foreign currencies in the early 1990s, but the losses helped it save “billions of ringgit” later during the 1997 Asian financial crisis, Tan Sri Nor Mohamed Yackop said today.

The former central bank assistant governor, often cited as a key player in the forex currency trading activities, was called to testify before the Royal Commission of Inquiry (RCI) today.

He admitted that BNM had “misread the market” and took “full accountability” for the losses.

“That lesson proved crucial in helping formulate policies to defend the country against the currency attacks in the 1997/1998 Asian Financial Crisis, saving the nation hundreds of billions of ringgit that would otherwise have been lost,” he said.

MKINI / MALAY MAIL

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