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