KUALA LUMPUR: The pre-determined short-term outflows of foreign currency loans, securities and deposits are expected to reach US$5.3 billion in the next 12 months, Bank Negara Malaysia said.
The outflows will include among others, scheduled repayment of external borrowings by the government and repayment arising from the maturity of foreign currency.
The central bank said the short forward positions amounted to US$13.11 billion as at end-February 2020, reflecting the management of ringgit liquidity in the money market.
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.
It expects foreign currency inflows to hit US$2.56 billion in the next 12 months.
“The only contingent short-term net drain on foreign currency assets are government guarantees of foreign currency debt due within one year, amounting to US$227.2 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,” Bank Negara said.
The central bank also said it did not engage in foreign currency options vis-à-vis ringgit.
As at end-February this year, Bank Negara’s official reserve assets amounted to US$103.4 billion while other foreign currency assets amounted to US$33.8 million.