The cabinet today agreed to form a Royal Commission of Inquiry on the 1980s foreign exchange scandal involving Bank Negara Malaysia.

The special task force investigating the matter formed in February, submitted its report today.

"The report showed a prima facie case on the losses suffered by Bank Negara in the 1980s and 1990s.

"The RCI will enable a more detailed and holistic investigation according to the law and using the immunity provided under Act 119," the Prime Minister's Office said in a statement.