Edge lower as bond outflows tests the external buffer
Bank Negara Malaysia (BNM) international reserves fell by USD0.5b (-0.4% MoM) to USD132.1b as at 31 July 2026, the first decline in four months
- Import cover held steady at 4.7 months, and the reserves-to-short-term external debt ratio stayed unchanged at 0.9x.
The decline was driven mainly by lower FX reserves
- Foreign currency reserves fell by USD0.4b (-0.3% MoM) to USD116.8b, likely reflecting sizeable foreign outflows from the domestic bond market. Meanwhile, net FX reserves declined to USD81.3b in June (May: USD83.4b), mainly due to a sharp increase in short positions (-USD27.2b).
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