March sees USD0.5b drop in FX reserves amid stronger greenback
Bank Negara Malaysia (BNM) international reserves depleted further by USD0.5b or -0.4% MoM to a three month low of RM113.8b as of 29 March 2024
- Sufficient to finance 5.6 months of imports of goods and services (previously retained imports: 7.0 months) and is 1.0 time total short-term external debt.
BNM’s rise in gold holdings fails to offset FX reserves dip
- Foreign currency reserves (-USD0.5b or -0.5% MoM to USD101.3b): fell for the second consecutive month, potentially due to a decrease in the converted value of non-USD assets, BNM’s FX intervention and capital market outflows.
- Gold (+USD0.2b or 8.1% MoM to USD2.7b): largest holdings on record as gold price surged by 9.8% MoM to USD2,229.9/troy ounce, driven by a risk-off impulse.
- Meanwhile, special drawing rights, other reserve assets and IMF reserve positions remained relatively unchanged.
Download Full Content:
