KUCHING: Bank Negara Malaysia (BNM) recently released a press statement detailing disclosure of international reserves as end-June 2010.
In accordance with the International Monetary Fund’s (IMF) Special Data Dissemination Standard (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, as well as 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 international reserves based on the SDDS format showed that the official reserve assets amounted to US$94,772.5 million, while other foreign currency assets amounted to US$2,210 million as at end of June.
As shown in the detailed breakdown page, which can be found at the BNM website, for the next 12 months, the predetermined short-term outflows of foreign currency loans would amount to US$381 million arising from scheduled repayments of external borrowings by the government.
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 amounting to US$3,933 million in the next 12 months. There were net long forward positions of US$2,150 million equivalent as at end of June.
The only contingent short-term net drains on foreign currency assets were government guarantees of foreign debt due within one year, amounting to US$162.84 million. There were 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 also did not engage in options in foreign currencies vis-à-vis the ringgit. Meanwhile, securities lent and securities borrowed amounted to US$161.5 million respectively.
Overall, the above detailed breakdown of international reserves under the IMF SDDS format indicated that as at end of June this year, Malaysia’s reserves remained usable and unencumbered.