Friday, January 5, 2018

Bank Negara printed RM 2 Billion to buy government land, and pay 1MDB 's IPIC debt -Meanwhile, reserves fell by RM 20 Billion

by Ganesh Sahathevan


This story on its own is a joke.Bank Negara now wants us to believe that it has become a landowner, and property developer:

Bank Negara buys land for RM2b for financial education hub


Many have speculated that this is nothing more than a MOF Inc money go-round, organized to help MOF Inc meet its USD 600 Million payment to IPIC, which fell due on 31 December 2017.


What is not in doubt however, for these figures below are from Bank Negara's own fortnightly statements of assets and liabilities, is that in last two weeks of 2017, Bank Negera's printed or otherwise out into circulation RM 2 Billion, while the Ringgit value of the reserves of gold and foreign currency fell by about RM 20 Billion.
The steep fall in the value of the Ringgit against the USD between 15 December 2017 and 31 December 2017  did little to stem the fall in reserves.



15 December 2017
29 December 2017

15 December 2017
29 December 2017

END




3 comments:

  1. Dear Sir. Repeat after me. Correlation is not causation. Google the phrase if you cannot tell the difference. It can be exciting to link unrelated stuff because it makes one look clever. Just because everything involves money printed by BNM does not make the imaginary link valid. Currency and reserves going up or down has no link to BNM buying land. And did you know that BNM is not a govt entity but is a statutory entity, established by an Act of Parliament? Don’t know the difference? Don’t think there is a difference? Knowing the difference is important because then you would understand that BNM can do whatever it wants with its own money (which is not govt money) as long as it contributes to its own objectives. This includes establishing institutions for financial education. Buying land with existing buildings to support that goal is common sense. Also, nothing in the Act prevents BNM from owning land and buildings. TQ sir for your attention. Hope there is a little enlightenment.

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  2. Wonderful. I am going to publicize this. It is what I have come to
    expect from Bank Negara.

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  3. BNM been owning and running that Islamic finance university for years. And they’ve been running Sasana Kijang and Lanai Kijang, two of the most well run real estate properties in KL.

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