BNM International Reserves - 8 November 2023

Shrank further by USD1.6b in October due to the depletion of FX reserves

Bank Negara Malaysia (BNM) international reserves declined for the third consecutive month, falling by USD1.6b or -1.5% MoM to a one-year low of USD108.5b as of 31 October 2023

  • Sufficient to finance 5.1 months of imports of goods and services (previously retained imports: 7.0 months) and is 1.0 time total short-term external debt.

The decline was mainly attributable to a continued drop in foreign currency reserves

  • Foreign currency reserves (-USD1.6b or -1.6% MoM to USD96.5b): shrank to its lowest level since October 2022 due to continued central bank interventions, a fall in the conversion value of other foreign currencies into USD, reduced exports receipts and possible rise in portfolio capital outflows. Notably, the BNM's net FX reserves fell to an 11-month low USD56.7b in September (Aug: USD59.8b) as the short position in FX swaps widened to USD24.1b (Aug: USD22.9b).
  • IMF reserve position (-USD0.1b or -6.2% MoM to USD1.3b): declined at the fastest pace since March 2015.
  • Meanwhile, special drawing rights, other reserve assets, and gold reserve were relatively unchanged.