‘International reserves remain usable’

KUALA LUMPUR: The detailed breakdown of international reserves under the International Monetary Fund’s Special Data Dissemination Standard ( IMF SDDS) format indicates that as of end-May 2017, Malaysia’s reserves remain usable.

Bank Negara Malaysia (BNM) said the detailed breakdown of international reserves based on the SDDS format also indicated that official reserve assets amounted to US$98.01 billion, while other foreign currency assets amounted to US$1.56 billion as of end-May 2017.

For the next 12 months, the predetermined short-term outflows of foreign currency loans arising from scheduled repayment of external borrowings by the government would amount to US$274.2 million, it said.

Meanwhile, the short forward positions amounted to US$16.79 billion as of end-May 2017, reflecting the management of ringgit liquidity in the financial system.

The central bank said in line with the practice adopted since April 2006, the data excluded projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to US$2.30 billion in the next 12 months.

The only contingent short-term net drain on foreign currency assets are government guarantees of foreign debt due within one year, amounting to US$187.4 million, said BNM.

“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.

Bank Negara Malaysia also does not engage in foreign currency options vis-a-vis the ringgit,” it added. — Bernama