Page 329 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR NUMBERS

Generally, the Group is exposed to three (3) types of foreign exchange risk, namely, translation risk, transactional risk and
economic risk, which are managed in accordance with the market risk policy and limits. The FX translation risks are mitigated

Foreign exchange (“FX”) risk arises as a result of movements in relative currencies due to the Group’s operating in business
to Total
as the assets are funded in the same currency. The Group controls its FX exposures by transacting in permissible currencies.
activities, trading activities and structural foreign exchange exposures from foreign investments and capital management activities.
capital RM’000 3,039,191 33,707 6,505,466 116,871 12,819 28,347,644 583,809 115,359 38,754,866
sufficient Others RM’000 5,044 - - - - - - - 5,044

ensure Canadian Dollar RM’000 5,580 - - - - - - - 5,580

to Yen - - - - - - -
periodically Japanese RM’000 20,068 - - - - - - - 20,068

conducted Great Britain Pound RM’000 1,558 - - - - - 1,558

is Euro RM’000 5,668 340 - 6,008
testing It has an internal Foreign Exchange Net Open Position (“FX NOP”) to measure, control and monitor its FX risk, and implements The table below analyses the net foreign exchange positions of the Group and the Bank by major currencies, which are mainly in US Dollar, Australian Dollar, Swiss Franc, Euro, the Great Britain Pound, Japanese Yen and Canadian Dollar. The “others” Swiss Franc RM’000 1,231 - - - -
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

Stress foreign exchange risk include mainly exposures to United Arab Emirates Dirham, Qatari Rial and Singapore Dollar. - - - - - - -

exposures. Australian Dollar RM’000 783 783

FX minimise to United States Malaysian Dollar Ringgit RM’000 RM’000 117,764 2,881,495 - 33,707 103,255 6,402,211 - 116,871 - 12,819 6,102 28,341,202 - 583,809 3 115,356 227,124 38,487,470 These balances exclude balances which are not within the scope of MFRS 9, Financial Instruments.

Market risk (cont’d.) Types of market risk (cont’d.) Non-traded market risk (cont’d.) Foreign exchange risk strategies hedging FX buffer the FX risk. Group 2023 Assets Cash and short-term funds Financial investments designated at fair value through profit and loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Islamic derivative financial assets Financing

(b) (ii)
47.

327