BNM’s International Reserves Reach USD113.8 Billion

Bank Negara Malaysia announced that its international reserves amounted to USD113.8 billion as of 28 June 2024. This level of reserves has accounted for the quarterly foreign exchange revaluation changes.

The current reserves position is sufficient to finance 5.4 months of imports of goods and services and is 1.0 times the total short-term external debt.

In a related update, Bank Negara Malaysia has expanded its measure of reserve coverage from retained imports to include imports of goods and services.

This change, effective from 22 February 2022, aligns with international best practices and reflects the growing importance of the services sector in the economy.

Historically, the reserve coverage of imports of goods and services has been between 5 and 8 months since 2008, exceeding the generally accepted adequacy threshold of 3 months.

The Bank emphasised that reserve adequacy should be assessed with a comprehensive understanding of the country’s external position, financial system, and economic policies.

Malaysia’s strong economic fundamentals, including a healthy current account surplus and large foreign currency external assets, support the country’s external position alongside the flexible ringgit exchange rate.

This robust reserve level demonstrates Malaysia’s ability to withstand external shocks, providing stability and confidence in the country’s economic resilience.

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