Monday, May 10, 2010

Economic Highlights - Foreign Exchange Reserves Inched Up To US$96.0bn - 10/5/2010

The foreign exchange reserves increased by US$0.25bn or RM0.8bn in 2H April to US$96.0bn or RM313.9bn as at 30 April, compared with an increase of US$0.44bn or RM1.4bn in 1H April. This was attributed to the repatriation of export proceeds and some inflow of foreign portfolio funds, which were partially offset by import bills. As it stands, the foreign portfolio investment in fixed income papers bounced back to increase by RM12.9bn in March, from -RM1.0bn in February. As a result, total holdings in fixed income instruments by foreign portfolio investors rose to RM85.2bn at end-March, the highest in 19 months and from RM72.3bn at end-February (Chart 1). At the current level, the foreign exchange reserves are sufficient to finance 8.5 months of retained imports and cover 4.0 times the short-term external debt of the nation, compared with 8.1 months of retained imports and 4.0x of shortterm external debt cover a year ago.

Economic Highlights - Foreign Exchange Reserves Inched Up To US$96.0bn - 10/5/2010

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