Bank Negara’s International Reserves Rise to US$122.8bil as at Sept 12

KUALA LUMPUR — Bank Negara Malaysia (BNM) announced that the nation’s international reserves increased to US$122.8 billion as of Sept 12, reflecting Malaysia’s continued resilience in navigating external economic uncertainties.

Strong Reserve Position

In a statement, BNM highlighted that the current reserves level is sufficient to finance 5.5 months of imports of goods and services and is more than adequate to cover short-term external debt.

Economists said the healthy reserve position signals stability in Malaysia’s external sector and enhances the country’s capacity to withstand potential global financial market volatility.

Drivers Behind the Increase

The uptick in reserves was attributed to:

• Portfolio inflows into Malaysian assets following stronger investor sentiment.
• Steady export performance, especially from key sectors such as electronics and commodities.
• Favourable global oil prices, which continue to support Malaysia’s current account surplus.

Regional and Global Context

The increase comes at a time when many emerging markets are facing currency pressures due to the U.S. Federal Reserve’s interest rate policy and global risk aversion. Malaysia’s ability to maintain and strengthen its reserves underscores its robust macroeconomic management.

“BNM’s proactive policy framework has ensured that Malaysia remains well-positioned to absorb external shocks. The rise in reserves is an encouraging signal for investors and credit rating agencies,” an analyst noted.

Outlook for Malaysia

With international reserves standing at US$122.8 billion, Malaysia is expected to retain a stable credit outlook, reinforcing confidence among global investors. Analysts anticipate that BNM will continue to prioritize monetary and financial stability while keeping a close watch on external developments.