The foreign exchange reserves increased by US$0.1bn or RM0.3bn in 1H May to US$96.1bn or RM314.2bn as at 14 May, compared with an increase of US$0.25bn or RM0.8bn in 2H 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 8.3 months of retained imports and cover 4.4 times the shortterm external debt of the nation, compared with a high of 10.0 months of retained imports and 4.3x of short-term external debt cover in February.
Economic Highlights : Foreign Exchange Reserves Inched Up To US$96.1bn As At 14 May - 21/05/2010
No comments:
Post a Comment