Malaysia’s international reserves remain usable as at end-October 2021 under IMF’s SDDS format, says BNM

Malaysia’s international reserves remain usable as at end-October 2021 under IMF’s SDDS format, says BNM
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KUALA LUMPUR (Nov 30): Bank Negara Malaysia (BNM) said the detailed breakdown of international reserves under the International Monetary Fund’s (IMF) special data dissemination standard (SDDS) format indicates that as at end-October 2021, Malaysia’s international reserves remain usable.

The central bank said in a Tuesday statement that in accordance with the IMF’s SDDS format, the detailed breakdown of international reserves 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 detailed breakdown of the international reserves based on the SDDS format showed that BNM’s official reserve assets amounted to US$116,131.3 million, while other foreign currency assets amounted to US$154.4 million as at end-October 2021.

For the next 12 months, BNM said 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$5,119.7 million.

“The short forward positions amounted to US$7,625.1 million while long forward positions amounted to US$150 million as at end-October 2021, reflecting the management of ringgit liquidity in the money market,” the central bank said in the statement.

In line with the practice adopted since April 2006, BNM stated that the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans.

“Projected foreign currency inflows amount to US$2,339.3 million in the next 12 months,” it 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 US$386.3 million, it added.

BNM said 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 added that it does not engage in foreign currency options vis-à-vis ringgit.

Joyce Goh