KUALA LUMPUR, Oct 5 — Pre-determined short-term foreign currency outflow could reach up to US$9.4 billion (about RM43.69 billion) over the next 12 months amid a stronger dollar environment, Bank Negara Malaysia (BNM) said in an updated statement initially issued last Friday.
The latest projection is higher than the previous estimate announced on August 30, 2022, at US$8.48 billion (RM39.33 billion). The country’s projected foreign currency inflow for the same period was estimated at US$2.16 billion (RM10.2 billion) but has been revised down to US$2.04 billion (RM9.46 billion).
Malaysia’s pre-determined short-term outflow of foreign currency loans, securities and deposits includes the scheduled repayment of external borrowings by the Malaysian government and matured foreign currency-denominated BNM interbank bills, the bank said in a statement on Friday.
“In line with the practice adopted since April 2006, the (foreign currency inflow) data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans,” it added.
The revised upward projection for Malaysia’s pre-determined foreign currency outflow came amid the ringgit's continued depreciation.
The ringgit opened at 4.64 against the US dollar this morning as foreign exchange markets took their cue from higher US interest rate prospects to fight inflation.