KUALA LUMPUR: International reserves of Bank Negara Malaysia (BNM) edged up 0.3% to US$115.9 billion as at April 14, 2023 from US$115.5 billion on March 31.
The central bank in its statement of liabilities and assets as at April 14 stated that the reserves position is sufficient to finance 5.1 months of imports of goods and services, and is 1.1 times of the total short-term external debt.
The main components of the reserves are: foreign currency reserves, which maintained at US$103.1 billion on April 14, same as two weeks ago (March 31); International Monetary Fund reserves position stayed the same at US$1.4 billion, and IMF-linked special drawing rights or SDR, stood at US$5.8 billion.
Its other remaining components are gold, which maintained at US$2.5 billion, the same as two weeks ago, and other reserve assets, which were at US$3.1 billion as opposed to US$2.7 billion previously.
The central bank's total assets stood at RM626.33 billion as at April 14, while currency in circulation stood at RM164.17 billion.
BNM publishes Malaysia's international reserves fortnightly in line with the international best practices, which included the indicator on reserve coverage of imports of goods and services, effective from Feb 22, 2022.
According to the central bank, on a historical basis, reserve coverage of imports of goods and services indicator has been in the range of between five and months months since 2008.
“[It is] well above the generally-accepted ‘rule of thumb' adequacy threshold of three months, and demonstrates the ability of the Malaysian economy to withstand external shocks,” BNM said.
Source : The Edge Markets