PETALING JAYA: Bank Negara Malaysia’s international reserves climbed US$900mil or 0.8% month-on-month (m-o-m) to US$123.6bil as of Sept 30 – the highest level in nearly 11 years.
The reserves were driven by gold revaluation and, to a lesser extent, higher foreign exchange holdings, said Kenanga Research.
Gold reserves surged by US$700mil or 17.7% m-o-m to a record US$4.8bil, buoyed by a 16.1% quarter-on-quarter (q-o-q) rally in gold prices, breaking new highs at US$3,812.2 per ounce.
The price rally, the research house said, came amid “global uncertainty and continued central bank buying”.
Foreign exchange (forex) reserves, meanwhile, rose US$200mil or 0.2% to US$109.3bil, supported by revaluation gains and ongoing corporate forex repatriation although “heavy bond outflows in September capped the upside”.
Kenanga Research also said the central bank’s net forex reserves, which exclude short-term forex liabilities, climbed to US$73.3bil in August – the highest in three years.
Despite the improvement, it said both import coverage and the reserves-to-short-term external debt ratio were unchanged at 4.8 months and 0.9 times, respectively, while special drawing rights, International Monetary Fund reserve position and other reserve assets remained broadly unchanged.
In ringgit terms, total reserves increased RM2.2bil or 0.4% m-o-m to RM520.9bil in September.
This marked a four-month high.
The research house said the ringgit was one of the region’s strongest currencies in September, second only to the baht.
“It also stood out as the only Asean-5 currency to extend gains for an eight straight month, appreciating 0.4% m-o-m against the US dollar.”
The baht rose 1.3%, followed by the ringgit, which gained 0.4%, and the Singapore dollar, which edged up 0.01%.
