Bank Negara: International reserves remain usable

Bank-NegaraKUALA LUMPUR: The detailed breakdown of international reserves under the International Monetary Fund’s Special Data Dissemination Standard (IMF SDDS) format indicates that as of end-April, the country’s reserves remain usable, said Bank Negara.

In a statement on Wednesday, the central bank said that in accordance with the IMF SDDS format, the detailed breakdown of international reserves provided forward-looking information on the size, composition and usability of reserves and other foreign currency assets.

It also provided the expected and potential future inflows and outflows of foreign exchange of the federal government and Bank Negara over the next 12-month period.

In a detailed breakdown of the international reserves based on the SDDS format, the central bank also said official reserve assets amounted to US$96.1 billion (RM411.6 billion), while other foreign currency assets amounted to US$2.09 billion as of end-April 2017.

It added that for the next 12 months, the pre-determined short-term outflows of foreign currency loans would amount to US$277.9 million, arising from scheduled repayments of external borrowings by the Government.

Meanwhile, the short forward position amounted to US$19.1 billion as at end-April 2017, reflecting the management of ringgit liquidity in the financial system.

Bank Negara said in line with the practice adopted since April 2006, the data excluded projected foreign currency inflows arising from interest income and drawdown of project loans amounting to US$2.23 billion in the next 12 months.

The detailed breakdown also pointed out that the only contingent short-term net drain on foreign currency assets were government guarantees of foreign debt due within one year, amounting to US$130 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. We also do not engage in foreign currency options vis-a-vis the ringgit,” said Bank Negara.