KUALA LUMPUR (April 3): Bank Negara Malaysia (BNM) said its international reserves, which account for 23.9% of the country’s external assets, remained an important policy buffer against external shocks.

The central bank highlighted Malaysia’s ability in responding to external shocks, demonstrated by the country’s sizeable net foreign currency asset position. 

About 94.5% of external assets were denominated in foreign currency compared to 41.4% of total external liabilities, it said. 

Correspondingly, a bout of depreciation in the ringgit will result in a larger increase in external assets compared to external liabilities, thus enhancing Malaysia’s external position. This, BNM said, will support the country’s economy with resilience against potential external shocks.

BNM’s international reserves amounted to US$103.6 billion as at end-2019, compared with US$101.4 billion as at end-2018, which the central bank said is sufficient to finance 7.5 months of retained imports and is 1.1 times the short-term external debts.

For more stories on BNM's annual report, click here.