International Reserves of Bank Negara Malaysia as at 31 December 2011

The international reserves of Bank Negara Malaysia amounted to RM423.4 billion (equivalent to USD133.6 billion) as at 31 December 2011. The reserves level as at 31 December 2011 has taken into account the quarterly adjustment of foreign exchange revaluation loss, following the strengthening of the ringgit against some major currencies during the quarter. The reserves position is sufficient to finance 9.7 months of retained imports and is 4 times the short-term external debt.

For the year 2011 as a whole, the international reserves rose by RM94.8 billion to RM423.4 billion (end-2010: RM328.7 billion).  The higher reserves reflected mainly the current account surplus and inflows of foreign direct investment, portfolio capital and other investments. However, these inflows were partly offset by direct investment abroad. In addition, there was also a cumulative unrealized foreign exchange revaluation gain following the strengthening of some of the major currencies against the ringgit during the year.

Malaysia’s international reserves, which are usable and unencumbered, are expected to continue to remain at a comfortable level in 2012. The level of reserves would be supported by the trade and investment inflows.