Malaysia's official reserve assets at US$105.3 bln as of end-Nov 2020 - BNM

In a statement today, it said the detailed breakdown of international reserves in accordance with the IMF (International Monetary Fund) Special Data Dissemination Standard format provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal government and BNM over the next 12-month period.

The central bank said for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which included among others, scheduled repayment of external borrowings by the government and maturity of foreign currency Bank Negara Interbank Bills amounted to US$8.47 billion.

“The short forward positions amounted to US$6.425 billion, while long forward positions amounted to US$1.485 billion as of end-November 2020, reflecting the management of ringgit liquidity in the money market.

“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./p

"Projected foreign currency inflows amount to US$2.438 billion in the next 12 months,” it noted.

BNM said the only contingent short-term net drain on foreign currency assets are government guarantees of foreign currency debt due within one year, which amounted to US$327.6 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.” it said.

The central bank also does not engage in foreign currency options vis-à-vis the ringgit.