PUTRAJAYA - Former Bank Negara Malaysia (BNM) governor Tan Sri Zeti Akhtar Aziz said she knew of the central bank's forex losses following a meeting in London with the bank's senior officers.
She said the late BNM governor, Tan Sri Jaffar Hussein, was informed of the massive exposure to the central bank as a result of foreign exchange transactions during the meeting.
Zeti, who was in BNM's London office when the financial scandal took place, said the then assistant governor Datuk Abdul Murad Khalid told Jaffar about the massive exposure to BNM in a meeting at London Apartment where Jaffar was staying in 1992.
"Datuk Abdul Murad told Jaffar regarding the massive exposure to Bank Negara Malaysia as a result of the foreign exchange transactions. As far as I could remember, Abdul Murad did not have the details regarding the foreign exchange transactions," she said.
Zeti, 70, said also present at the meeting was Dr Awang Adek Hussin.
"Jaffar responded by saying that it was probably gross positions that were known by the counter parties that BNM traded with. This counter parties would not be aware of the net positions of the bank and he was of the view that the net positions was