PETALING JAYA: Bank Negara Malaysia’s (BNM) international reserves had declined slightly to US$112.7 billion (RM520.4 billion) as at May 31, 2023, from US$114.7 billion (RM529.74 billion) a fortnight ago.
“The reserves position is sufficient to finance 4.8 months of imports of goods and services, and is one time the total short-term external debt,” the central bank said in a statement today.
International reserves, also known as foreign reserves or foreign exchange reserves, are assets held by a country’s central bank or monetary authority.
These reserves are typically in the form of foreign currencies and other internationally accepted assets, such as gold.
The primary purpose of international reserves is to support a country’s monetary and financial stability. They serve as a buffer or insurance against potential economic shocks and uncertainties.
The central bank’s foreign currency reserves fell to US$100.3 billion (RM463.24 billion) from US$102.1 billion (RM471.55 billion) as at May 15, while other reserve assets dropped to US$2.7 billion (RM12.5 billion) from US$2.9 billion (RM13.4 billion).
Meanwhile, the bank’s IMF reserves, gold and special drawing rights (SDRs) were unchanged at US$1.4 billion (RM6.47 billion), US$2.5 billion (RM11.55 billion) and US$5.8 billion (RM26.79 billion) respectively.