Malaysia's central bank announced on January 30 that it plans to make the trading of ringgit-based interest rate derivatives available to a greater range of market participants, which is meant to boost the competitiveness of the banks in the region.

The lending institution also plans to allow residents to trade foreign currencies through licensed onshore banks, according to Dow Jones Newswires. The country's central bank plans to allow licensed onshore banks to offer ringgit-denominated interest rate derivatives to both non-residents and financial entities that are not banks. The new regulations involving both currency trading and derivatives transactions will be instated on January 31.

The central bank said in a statement that "the above measures will contribute towards increasing the liquidity, depth and participation of a wider range of players in the domestic financial markets," Reuters reports.

Azrul Azwar Ahmad Tajudin, chief economist at Bank Islam, told the media outlet that the new offerings are designed to level the playing field, putting local banks on the same playing field as foreign competitors.

Reuters reports that the new offerings are part of a 10-year plan that is designed to help the Asian country attract more capital from foreign investors.