Up 2.5% MoM in September, hitting near-decade high on FX revaluation gains
Bank Negara Malaysia (BNM) international reserves rose by USD2.9b or 2.5% MoM, reaching USD119.7b as of 30 Sep 2024—the highest level since Nov 2014
- However, despite the notable increase, reserve adequacy in terms of import coverage fell significantly to 4.8 months (Aug: 5.4 months), driven by a sharp rise in imports. Additionally, the reserves now cover only 0.9 time the total short-term external debt, falling below the IMF’s recommended minimum adequacy ratio of 1.0.
The rise in reserves was primarily driven by a sharp increase in foreign currency reserves, gold, and special drawing rights, bolstered by FX revaluation gains
- Foreign currency reserves (+USD2.3b or 2.2% MoM to USD106.8b): largest holdings since November 2014, supported by continued inflows into the capital market, along with quarterly revaluation gains. Notably, BNM's net FX reserves rose for the fourth straight month to USD61.2b in August (Jul: USD59.3b).
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