Hit near 11-year peak in August: Policy steady, ringgit set for further gains
Bank Negara Malaysia (BNM) international reserves rose by USD1.4b or 1.2% MoM to USD122.7b as of 29 August 2025, the highest since 2014
- Despite the increase, both import coverage and the reserves-to-short-term external debt ratio held steady at 4.8 months and 0.9 time respectively.
The increase came entirely from foreign exchange (FX) reserves
- FX reserves climbed USD1.4b (+1.3% MoM) to USD109.1b, marking the highest in nearly 11 years. Foreign bond inflows in August, coupled with ongoing corporate FX repatriation, supported the gain. Net FX reserves continued to rise to USD71.9b in July (Jun: USD71.4b) as short positions narrowed further to USD21.2b (Jun: USD23.2b).
- Other components remained broadly unchanged.
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