BNM’s international reserves grow

 No News Is Bad News

For image info, go to https://www.statista.com/statistics/319139/national-debt-of-malaysia-in-relation-to-gross-domestic-product-gdp/ 

BNM’s international reserves grow

KUALA LUMPUR, Sept 7, 2023: Despite the relentless racial and religious spewed by politicians, thus denting investors’ confidence, Banak Negara Malaysia (BNM)’s international reserve rose to US11.5b on Aug 30, up US$112.2b on Aug 15.

That augurs well for Anwar Ibrahim’s Unity Government (UG), though many be quick to discuss the growth as “peanuts”. It is afterall, a start for financial and economic recovery, amid the UG’s momumental task of resolving the country’s RM1.5 trillion national debt.

And the debt, as a reminder, was raked up by past federal governments, no thanks to the likes of Dr Mahathir Mohamd (who governed Malaysia for a total of 26 years) and the 1MDB (1Malaysia Development Berhad) Najib Razak.

No News Is Bad News reproduces below what was apparently reported by Bloomberg and published by The Star:

Bank Negara's international reserves rise to US$112.5bil

BANKING

Thursday, 07 Sep 2023

3:19 PM MYT

 

The Bank Negara Malaysia logo outside the Sasana Kijang Center, which houses the bank's facilities, in Kuala Lumpur, Malaysia, on Friday, May 13, 2022. Malaysia’s economy grew at a faster-than-expected pace in the first quarter of the year as activity picked up with the easing of virus restrictions. Photographer: Samsul Said/Bloomberg

KUALA LUMPUR: Bank Negara’s international reserves amounted to US$112.5bil as at Aug 30, up from US$112.2bil as at Aug 15.

“The reserves position is sufficient to finance 5.2 months of imports of goods and services, and is 1.0 time of the total short-term external debt,” the central bank said in a statement.

Bank Negara said the main components of the international reserves were foreign currency reserves (US$100.3bil), International Monetary Fund reserves position (US$1.4bil), Special Drawing Rights (US$5.7bil), gold (US$2.4bil) and other reserve assets (US$2.7bil). - The Star

BNM says economy will continue growing, inflation to ease by year-end

Central bank says the overnight policy rate of 3% continues to support growth while keeping inflation in check.

FMT Business - p 2023,

Bank Negara Malaysia says the growth of the economy was affected by slower external demand and a decline in commodity production in the second quarter. (AP pic)

PETALING JAYA: The economy will continue to grow, and inflation gradually come down for the rest of the year, said Bank Negara Malaysia (BNM) in its monetary policy statement today.

BNM said domestic financial conditions remain conducive to financial intermediation amid sustained credit growth. “These factors will continue to underpin the growth momentum going into 2024,” it said.

“We are keeping an eye on how well the Malaysian economy is doing, to ensure that the overnight policy rate (OPR) continues to support growth while keeping inflation in check,” it said, adding that inflation has trended down as cost conditions ease.

It said the current OPR level is consistent with the health of the economy and remains supportive of growth. It added that financing remains available amid sustained credit growth.

At the conclusion of its two-day meeting today, the central bank’s Monetary Policy Committee (MPC) decided to maintain the OPR at 3%.

BNM also stated that economic growth was affected by slower external demand and a decline in commodity production in the second quarter of the year.

Nevertheless, it said that moving forward, growth will continue to be driven by resilient domestic expenditure amid the challenging external environment.

“Continued employment and wage growth, particularly in the domestic-oriented sectors, remain supportive of household spending. Tourist arrivals and spending are expected to improve further.

“Investment activity would be supported by continued progress of multi-year infrastructure projects, and implementation of catalytic initiatives under the recently announced national master plans,” it said.

In line with expectations, headline and core inflation have continued to ease amid the more moderate cost conditions. This moderating trend would likely continue in the second half of 2023, BNM said.

It noted the risks to the inflation outlook remain highly subject to changes to domestic policy on subsidies and price controls, global commodity prices and financial market developments, as well as the degree of persistence in core inflation.

On the external front, it said the global economy continues to expand, driven by resilient domestic demand supported by strong labour market conditions. Global growth, however, remains weighed down by persistently elevated core inflation and higher interest rates.

Global trade is also affected by rotation of spending from goods to services, and the ongoing electrical and electronics (E&E) downcycle,” it said, adding that slower-than-expected growth in China also weighed on the global economy.

“The growth outlook remains subject to downside risks, mainly from a slower momentum in major economies, higher-than-anticipated inflation outturns, an escalation of geopolitical tensions, and a sharp tightening in financial market conditions,” BNM added.