The Central Bank Has Sufficient Reserves as of February 2021
As of 15 February 2021, the Bank Negara Malaysia international reserves have gone up to US$109.7 billion from their previous US$107.8 billion in January 2021.
With the new total, the central bank has enough reserves to finance 8.6 months’ worth of retained imports. It also has the equivalent of 1.2 times the total of short-term external debt.
The main contributors to the Bank Negara Malaysia International Reserves are the foreign currency reserves, the Special Drawing Rights, other reserve assets, gold, and its International Monetary Fund reserves. The central bank’s assets were foreign exchange, gold, and other reserves.
Among the other reserves are Malaysian government papers, loans, advances, buildings, land, SDRs worth Rm441.03 billion, and deposits with financial institutions. The capitals and liabilities include reserves, currency that is in circulation and paid-up capital. It also includes federal government deposits, other deposits, other liabilities, financial institution deposits, and SDR allocation.
The Signs of a Strong Economy
Based on the Bank Negara Malaysia International Reserves’ current standing, it is clear the Malaysian economy is still holding strong. Despite the setbacks caused by the COVID-19 pandemic, business interest in Malaysia is still holding strong.
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