
Can BNM Reserves Be Used To Pay Debt?
Bank Negara’s reserves of 113 billion ringgit are not the result of people’s taxes. This money comes from the flow of foreign money that enters our country through various means, such as investment or export revenue. For example, if there is investment coming into the country or we export a lot of goods, money from outside will come in and increase the National Bank Reserve.
However, it is important to understand that this Reserve cannot be taken and used to pay a debt of 1.5 trillion ringgit. The Reserve Bank has its own purpose, such as financing the country’s imports with foreign currency, especially in US Dollars.
However, it is important to understand that this Reserve cannot be taken and used to pay a debt of 1.5 trillion ringgit. The Reserve Bank has its own purpose, such as financing the country’s imports with foreign currency, especially in US Dollars.
So, although this large amount of Reserves provides stability in international trade and allows intervention in financial markets, it cannot be used to pay debts directly.