Deplete USD2.1b in December, but end 2024 higher by USD2.7b
Bank Negara Malaysia (BNM) international reserves fell by USD2.1b or -1.8% MoM, reaching USD116.2b as of 31 December 2024, marking a five-month low
- Despite the decline, reserve adequacy indicators improved, with Import coverage rose to 5.0 months (Nov: 4.6 months), and reserves also fully covered the total short-term external debt (1.0 time), aided by exchange rate revaluation. Notably, reserves grew by USD2.7b in 2024, rebounding from a USD1.2b contraction in 2023.
The drop was driven primarily by a depletion in foreign currency reserves, and marginal reductions in special drawing rights (SDRs) and other reserve assets
- Foreign currency reserves (-USD1.7b or -1.7% MoM to USD103.7b): fell after a modest rebound of USD0.9b in November. The drop largely reflects FX revaluation losses and sustained capital market outflows (around RM4.3b). To note, BNM’s net FX reserves edged higher to USD63.9b in November (Oct: USD63.4b), partly due to a slight reduction in short positions
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