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Dwindling forex reserve at Malaysia hits 5 year low
07 August 2015, 16:35
There seems to be little respite for Ringgit as Malaysia's foreign exchange
reserves have dropped below $100 billion for the first time since 2010.
Malaysian Ringgit has fallen to 17 year low.
Malaysian forex reserve rose all-time high in 2011, touching $155 billion. However it has fallen sharply from 2013 and down more than 18% in last two months.
As of latest forex reserve stands at $97.6 billion, lowest since 2008.
Malaysia used to generate 1/3rd of its revenue by selling crude oil and now with price lowest since 2008, pain remains high.
As of now the central bank's reserves are sufficient to finance 7.6 months of imports and stands at 1.1 times of short term debt.
A debt downgrade and further rout in Ringgit seems likely.
Malaysian forex reserve rose all-time high in 2011, touching $155 billion. However it has fallen sharply from 2013 and down more than 18% in last two months.
As of latest forex reserve stands at $97.6 billion, lowest since 2008.
Malaysia used to generate 1/3rd of its revenue by selling crude oil and now with price lowest since 2008, pain remains high.
As of now the central bank's reserves are sufficient to finance 7.6 months of imports and stands at 1.1 times of short term debt.
A debt downgrade and further rout in Ringgit seems likely.