Country's international reserves cannot simply be used, says deputy finance minister


KUALA LUMPUR: The government will not dip into the nation's RM436.5bil international reserves for Budget 2021 or Covid-19 economic stimulus packages, said Deputy Finance Minister Datuk Abdul Rahim Bakri.

"The international reserves are for specific uses and not for the budget or Covid-19 economic stimulus packages following the pandemic.

"The finances for the budget and economic stimulus packages are sourced through domestic borrowings from the local market," he said when answering a question raised by Pang Hok Liong (PH-Labis) in Dewan Rakyat on Tuesday. (Dec 1)

As of Sept 31 this year, Abdul Rahim said the nation's international reserves stood at USD105bil (RM436.5bil) which is an increase of USD1.4 bil (RM5.7bil) compared to last year.

He said the reserves are sufficient to bear the cost of imports for 8.4 months or equivalent to 1.1 of the nation's short term debts.

Abdul Rahim informed lawmakers that Bank Negara was using the international standard to gauge the nation's international reserves.

He said this includes the amount of foreign currency available, IMF financial standing, gold and other assets.

He added the nation's central bank uses currency reserves as liability guarantee for the local currency and as reserve deposits with foreign banks.

He said that among the foreign currencies held as reserves include US, UK, Japan and EU currencies.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Nation

Snatch thief in viral video nabbed
Former Terengganu MB, wife test positive for Covid-19
Sabah MACC detains tradesman over bribery attempt
Allowing low-risk patients to be home quarantined will ease hospital congestion, says Health DG
Disabled community applaud and hopeful on Permai assistance package
Socso committed to implementing programmes under Permai aid package
Number of Covid-19 cases should stabilise in a week, says Health DG
Seremban 2 court complex to be sanitised after 16 detainees contract Covid-19
Storehouse next to temple in Taman Desa Ria, PJ, gutted
526 cases recorded in Sabah a result of mass screenings of plantation workers

Stories You'll Enjoy