Malaysia's foreign exchange reserves dropped 3.4% in the two weeks ended Nov 30.
The international reserves of Bank Negara Malaysia amounted to RM275.3 billion or equivalent to USD73.1 billion as at 30 November 2005. During the period, there was a large external loan repayment by the Federal Government. The reserves position is sufficient to finance 8 months of retained imports and is 5.8 times the short-term external debt. Reported BNM.
They have declined 9.1% from a record US80.4bil on Aug 15, according to central bank data.
The international reserves of Bank Negara Malaysia amounted to RM275.3 billion or equivalent to USD73.1 billion as at 30 November 2005. During the period, there was a large external loan repayment by the Federal Government. The reserves position is sufficient to finance 8 months of retained imports and is 5.8 times the short-term external debt. Reported BNM.
They have declined 9.1% from a record US80.4bil on Aug 15, according to central bank data.
3 comments:
Hi,
I enjoy reading your blog, especially since it's filled with so many nuggets of wisdom! Unfortunately I do not have an accounting and finance background so I cannot really understand the significance of declining foreign reserves. If it's not too much trouble, could you explain a bit about that, please? I'm trying to learn a bit about finance. Thanks.
Thanks anon,
In layman's terms, it's just similar as how much of cash you have in hand. If you have settled partly your debts, says bank loan, then you'll certainly save some interest (financially good). But by such spending, you have only left with a balance of money just enough to cover your expenses for the rest of 5 months. That means you'll need to increase your income to spare and meet the subsequent months.
Theoretically, you are financially strong (sustainable for longer living) when you have more cash (reserves) in hand.
I see. That's interesting!
Thank you very much for taking the trouble to explain to me, put3put4!
Post a Comment