Malaysia cbank defends peg, explains reserves drop

MALAYSIA - The Malaysian central bank issued a statement on Apr 9, 2001 in defence of its ringgit/dollar fixed exchange rate after posting a six percent drop in its international reserves in Mar 2001.

Bank Negara Malaysia issued data on its website showing reserves dropped $1.81 billion to $27.81 billion on Mar 31 from $28.99 billion at the end of Feb 2001.

It said a loss due to revaluation of reserves accounted for $900 million of the drop, and a further $600 million was due to a higher import

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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