Official reserve assets at US$107.64 bln as at end-Dec

KUALA LUMPUR: Malaysia’s official reserve assets amounted to US$107.64 billion as at end-December 2020 while other foreign currency assets stood at US$561.1 million during the period, according to Bank Negara Malaysia (BNM).

In a statement, the central bank said 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 the maturity of foreign currency Bank Negara Interbank Bills, amounted to US$7.31 million.

In addition, it said the short forward positions amounted to US$5.79 million and long forward positions amounted to US$535 million as at endDecember 2020, reflecting the management of ringgit liquidity in the money market.

The central bank said in line with the practice adopted since April 2006, the data exclude projected foreign currency inflows arising from interest income and the drawdown of project loans.

It said projected foreign currency inflows amounted to US$2.47 million 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 USD327.6 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.

“Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit,” it said.

Overall, it said the detailed breakdown of international reserves under the IMF (International Monetary Fund) Special Data Dissemination Standard (IMF SDDS) format indicated that as at endDecember 2020, Malaysia’s international reserves remained usable.

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