Bank Negara Malaysia reported today that the international reserves amounted to USD113.3 billion as at 15 July 2024. The reserves position it said is sufficient to finance 5.4 months of imports of goods and services, 1 and is 1.0 times of the total short-term external debt.

This is lower compared to the Central Baknk's announcement early this month of USD113.8 billion as of 28 June 2024. This level of reserves has accounted for the quarterly foreign exchange revaluation changes.

Historically, the reserve coverage of imports of goods and services has been between 5 and 8 months since 2008, exceeding the generally accepted adequacy threshold of 3 months.

The Bank emphasised that reserve adequacy should be assessed with a comprehensive understanding of the country's external position, financial system, and economic policies.