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Sunday, August 23, 2015
Bank Negara reserves decline to RM356b
KUALA LUMPUR: Bank Negara Malaysia’s (BNM) international reserves fell RM8.3bil to RM356.4bil (US$94.5bil) over the past two weeks until Aug 14.
BNM said on Thursday the international reserves as at Aug 14 was sufficient to finance 7.5 months of retained imports and it was 1.0 time the short-term external debt.
The reserves had declined by RM8.3bil from the RM364.7bil (US$96.7bil) as at July 31, 2015.
The reserves position then was sufficient to finance 7.6 months of retained imports and was 1.1 times the short-term external debt.
The above news was taken from Bank Negara reserves decline to RM356B from The Star. The bad news is the reserves are still dropping, but at slower rate; although the Malaysian Ringgit continue to dive until 4.19 against the US Dollar before gaining back and close at 4.17 for the weekends.
The slower rate of the reserves drop would most likely because there is no longer intervention by the Bank Negara against the Malaysian Ringgit devaluation towards the week. The sentiment and confidence towards the Malaysian Ringgit remain weak although I believe that the assets and equities sell off by foreign investor begin to slow down as well. So, maybe time for the Malaysian Ringgit to consolidate?