BNM’s international reserves slip slightly to US$103.22b

KUALA LUMPUR: Bank Negara Malaysia’s (BNM) reserve assets fell marginally to US$103.22 billion (RM431 billion )as at end-October 2019, from US$103.3 billion (RM432 billion) as at Oct 15, 2019.

Other foreign currency assets amounted to US$160.3 million as at end-October 2019.

For the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the government and repayment arising from the maturity of foreign currency Bank Negara Interbank Bills, amount to US$5.5 billion.

The short forward positions amounted to US$13.84 billion as at end-October 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to US$2.56 billion in the next 12 months.

BNM said the only contingent short-term net drain on foreign currency assets are government guarantees of foreign currency debt due within one year, amounting to US$336.6 million.

There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. BNM also does not engage in foreign currency options vis-à-vis ringgit.

“Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-October 2019, Malaysia’s reserves remain usable,“ BNM said.

source https://www.thesundaily.my/business/bnm-s-international-reserves-slip-slightly-to-us-10322b-IN1681974