Strong Capital Inflows Push Forex Reserves Higher

Economic Research	7 June 2017
Malaysia
Economic Update
Strong Capital Inflows Push Forex Reserves Higher Malaysia’s forex reserves rose by USD1.9bn to USD98bn as at 31 May. This is mirrored by the foreign inflow of funds into the equity markets over the past few weeks and a likely reversal in bond market outflows. In MYR terms, the country’s forex reserves increased by MYR8.1bn to MYR433.3bn over the same period. The amount of excess liquidity – including repurchase agreements (repos) – mopped up by Bank Negara Malaysia (BNM) dropped marginally in May. This was due to the drop in the central bank’s interbank borrowings. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184