November up 0.6% MoM, buoyed by FX reserves rebound
Bank Negara Malaysia (BNM) international reserves rose by USD0.7b or 0.6% MoM, reaching USD118.3b as of 29 November 2024
- Despite the uptick, reserve adequacy slipped, with import coverage falling to 4.6 months (Oct: 4.8 months), driven by rising imports. Similarly, the reserves now cover only 0.9 time the total short-term external debt.
The increase was led by a rebound in foreign currency reserves, though tempered by marginal declines in special drawing rights (SDRs) and other reserve assets
- Foreign currency reserves (+USD0.8b or +0.8% MoM to USD105.4b): recovered modestly after a sharp USD2.2b drop in October. The improvement likely reflects stronger FDI inflows and a slower pace of capital outflows from the debt market (around RM1.0b). However, as expected, BNM’s net FX reserves reversed its five-month rising trend, falling to USD63.4b in October (Sep: USD65.3b), due to larger short positions possibly due to heightened intervention.
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