Foreign Reserves Rise to RM493.15 Billion on Jan 13 This Year
The Malaysian economy is showing positive signs as the international foreign reserves rise. According to the Central Bank, the foreign reserves reached US$ 114.9 billion on January 13 this year. The figures are constantly growing; on November 2022, it was recorded to be at US$ 109.7 billion. Foreign reserves dictate that the central bank is actively buying foreign currency to strengthen its currency or experience a positive trade balance.
The quarterly foreign exchange revaluation changes were included before the reserves level was gauged. In December, the numbers rose to US$ 114.6 billion. A BNM representative said that the reserves would suffice to finance 5.2 months’ worth of imports of goods and services. The position of the reserves could also sustain 1.0 times the total short-term external debt.
What Makes the Foreign Reserves Rise?
The reserves are composed of five main components – foreign currency reserves, International Monetary Fund, Special Drawing Rights (SDRs), gold and other reserve assets. Out of the five reserves components, four of them remain unchanged when compared to two weeks earlier. Initially, the foreign currency reserves are at US$102.6 billion; International Monetary Fund reserves its position at US$1.4 billion, Special Drawing Rights (SDRs) are at US$5.7 billion, and gold is at US$2.3 billion. Other reserve assets are currently at US$2.9 billion, previously at US$2.6 billion. In total, the BNM’s assets stood at RM621.81 billion on January 13; currency in circulation comes to RM164.62 billion.
Here’s what the breakdown of the asset and liabilities look like; gold, foreign exchange and other reserves, including SDRs, amount to RM504.52 billion, the Malaysian government papers are at RM12.82 billion, whereas the deposits with financial institutions stand at RM4.89 billion. Apart from that, loans and advances come to RM23.70 billion; lands and buildings total RM4.14 billion, and other assets are at RM71.72 billion.
The capital and liabilities include paid-up capital of RM100 million, reserves up to RM160.36 billion, currency in circulation at RM164.62 billion and financial institutions’ deposits at RM9.7 billion. Federal government deposits amount to RM9.78 billion, whereas other deposits are at RM38.06 billion. The Bank Negara papers are RM5.95 billion, and the SDRs allocation is RM28.21 billion. The rest of the liabilities accumulate to RM4.12 billion.
As the foreign reserves rise and Malaysia’s economy keeps growing, the Malaysian Ringgit value is also becoming stronger.
