Malaysia’s international reserves highest in 16 months

Malaysia’s international reserves highest in 16 months

International reserves availability is very important because this gives assurance to all other countries that the country will be able to pay its obligations even if something happens to its own currency. For example, a massive devaluation. If nations do not have sufficient international reserves in foreign currency, it may have to pay in advance before it could import. Imagine trying to get payment after shipment has been done from another country. It’s not going to happen.

According to investopedia.com “Foreign exchange reserves can include banknotes, deposits, bonds, treasure bills and other government securities. These assets serve many purposes but are most significantly held to ensure that a central government agency has backup funds if their national currency rapidly devalues or becomes entirely insolvent.”

Article theedgemalaysia.com KUALA LUMPUR (Aug 22): Malaysia’s international reserves continued to build up and expanded to the largest level in 16 months by mid-August, the central bank said on Thursday.

The foreign exchange reserves totalled US$115.9 billion as of August 15 compared with US$114.7 billion as of July 31, Bank Negara Malaysia (BNM) said in a statement. The latest level would be the country’s highest since April 2023.

The position is sufficient to finance 5.4 months of imports of goods and services, and is one time the total short-term external debt, it added.

BNM releases data on foreign exchange reserves every two weeks. Article theedgemalaysia.com

When good news continues

Ringgit is up… everyone knows that. Foreign funds are buying more of our equities versus last year… everyone knows that too. Corporate results thus far has been encouraging for many companies… this is also happening as we speak. Number of tourists are increasing and has recovered to the level before the Covid hit us. This is very positive too. More flights are coming. More concerts are coming. Generally, the good news are aplenty and now, we also have this news about our international reserves being the highest in past 16 months. Let’s wish the good news will continue.

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