And in accordance with ABIF, the BSP has signed a high-level agreement with Bank Negara Malaysia governing QABs and looks forward to forging at least two more agreements as early as next month.
The flight to quality is a predictable consequence of current financial conditions: the fragility of some countries and banks, combined with the heightened uncertainty regarding the future. Investors react by trying to move funds from more indebted countries to “safe havens”.