The purpose of a detailed breakdown of international reserves is to provide forward looking information not only on the size of reserves but the type and usability of reserves, and the future and potential inflows and outflows of foreign exchange over the next 12 month period. Data on inflows refer to returns from reserves and proceeds from foreign loans.
Outflows are mainly for external debt servicing.
Outstanding forward transactions undertaken is negligible. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks, and other financial institutions. Overall, the above detailed breakdown of international reserves under the IMF SDDS format indicates that as at end of August 2000, Malaysia's reserves is strong, usable and unencumbered. The amount of foreign currency assets which are not claims on non-residents is minimal. Malaysia's contingent short-term net drain on reserves is also insignificant.