International reserves as at end-Feb 2018 remained usable — BNM

KUALA LUMPUR: The detailed breakdown of international reserves under the International Monetary Fund’s Special Data Dissemination Standard (IMF SDDS) format indicated that as of end-February 2018, the country’s reserves remained usable, said Bank Negara Malaysia (BNM).

The central bank said in accordance with the format, the detailed breakdown of international reserves provided forwardlooking information on the size, composition and usability of reserves and other foreign currency assets.

It also provided the expected and potential future inflows and outflows of foreign exchange of the federal government and BNM over the next 12-month period.

Bank Negara also said official reserve assets amounted to US$103.68 billion (US$1=RM3.85), while other foreign currency assets amounted to US$1.57 billion as of end-Feb 2018.

It added for the next 12 months, the pre-determined short-term outflows of foreign currency loans would amount to US$229.9 million, arising from scheduled repayments of external borrowings by the government.

Meanwhile, the short forward position amounted to US$8.68 billion as at end-February 2018, reflecting the management of ringgit liquidity in the financial system.

BNM said in line with the practice adopted since April 2006, the data excluded projected foreign currency inflows arising from interest income and drawdown of project loans amounting to US$2.41 billion in the next 12 months.

The detailed breakdown also pointed out that the only contingent short-term net drain on foreign currency assets were government guarantees of foreign debt due within one year, amounting to US$90.6 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-a-vis the ringgit,” it added. — Bernama