This would enhance the assessment of vulnerabilities and foreign exchange risk exposure. Under the new format, Table I required the detailed breakdown of outstanding investment in foreign currency securities and deposits, which was previously released under total foreign exchange reserves. The information required are data on predetermined outflows and inflows of foreign currency in the next 12 months associated with foreign currency loans, securities and deposits, and related to financial derivatives, such as commitments in forwards, swaps and futures contracts. This table would also indicate whether there is any bunching of debt repayments which could result in large net drains on BNM reserves. For the Table II, Malaysia provides data on inflows from interest receipts on foreign currency securities and deposits.
Outflows are mainly for external debt servicing.
Since all inflows have not been included, Table II currently shows a smaller net inflow. It also shows that BNM does not engage in forward transactions, except for a small amount. Table III requires breakdown of contingent short-term outflows and inflows that give rise to potential or possible future additions or depletions of foreign currency assets. Items included here are off-balance sheet activities such as guarantees of external loan with debt service obligations falling due within 1 year by the Government, issue of foreign currency securities with embedded options and undrawn, unconditional credit lines. Malaysia do not have any undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks, and other financial institutions.