Malaysia’s official reserve assets at US$114.66 bln as at end-July 2024 - BNM

In a statement today, the central bank gave a detailed breakdown of international reserves, which provides forward-looking information on the size, composition, and usability of reserves and other foreign currency assets in line with the International Monetary Fund's (IMF) Special Data Dissemination Standard (SDDS) format.

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.

BNM said for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities, and deposits, which include the scheduled repayment of external borrowings by the government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to US$13.83 billion.

The net short forward positions stood at US$29.29 billion as at end-July 2024, 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, it said, adding that projected foreign currency inflows amount to US$2.49 billion in the next 12 months.

BNM noted that the only contingent short-term net drain on foreign currency assets is government guarantees of foreign currency debt due within one year, amounting to US$399.9 million.

"There are no foreign currency loans with embedded options and 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 ringgit.

"Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-July 2024, Malaysia's international reserves remain usable," it added.

-- BERNAMA