KUALA LUMPUR, September 30 – Malaysia’s official reserve assets amounted to US$112.46 billion at the end of August 2023, based on the International Monetary Fund’s (IMF) Special Data Dissemination Standard (SDDS) format. In a statement on Friday regarding the Detailed Disclosure of International Reserves as at End-August 2023, Bank Negara Malaysia (BNM) also clarified that other foreign currency assets amounted to US$1.7 million. “Overall, the detailed breakdown of international reserves in accordance with the IMF’s SDDS format indicates that Malaysia’s international reserves at the end of August 2023 remained usable,” it stated.
According to BNM, in accordance with the IMF’s SDDS format, the detailed breakdown of international reserves provides information on the size, composition, and usability of reserves, as well as other foreign currency assets, expectations, and prospects of foreign exchange inflows and outflows for the Federal Government and BNM for the next 12 months. “For the next 12 months, the known short-term outflows for foreign currency loans, securities, and deposits amounted to US$17.56 billion. “These short-term outflows include the scheduled repayments of foreign borrowings by the government and the maturity of Interbank Bills in foreign currency by Bank Negara,” it added.
The central bank also noted that the net forward sales position was US$22.89 billion at the end of August 2023, reflecting ringgit cash management in the money market. Consistent with the practice adopted since April 2006, the data does not include estimates of foreign exchange inflows from interest income and project loan expenditures, it explained. Estimates of foreign exchange inflows amounted to US$2.23 billion for the next 12 months, it added. According to BNM, the only short-term net outflow channel of foreign currency assets is the government’s guarantee for foreign currency debt maturing within one year, which amounts to US$369.5 million.
“Malaysia’s international reserves do not have any foreign currency loans containing options and do not have any untapped credit facilities and unconditional liquidity facilities granted by or to other central banks, international organizations, as well as other banks and financial institutions. “BNM is also not involved in foreign currency option transactions against the ringgit,” it clarified.
