Bank Negara Malaysia (BNM) recorded international reserves of $123.6 billion as of September 30, up from $122.8 billion at the beginning of the month.
According to an official statement, the current reserve level is capable of covering about 4.8 months of imports of goods and services, and is equivalent to 0.9 times the country's total short-term external debt.
The main components of the reserves consist of foreign currency ($109.3 billion), reserve position in the International Monetary Fund ($1.3 billion), special drawing rights (SDR) of $5.9 billion, gold ($4.8 billion) and other reserve assets ($2.3 billion).
The increase in reserves provides a positive signal to the country's financial stability, boosts investor confidence and gives Bank Negara room to manage fluctuations in the value of the ringgit or economic emergencies.
With strong reserves, Malaysia is able to withstand external impacts such as large capital outflows, falling commodity prices or global crises, without immediate reliance on external financing or sudden cuts in monetary policy.
The authorities are expected to continue to monitor international developments, particularly capital flows and currency market volatility, and take monetary measures or interventions aimed at maintaining the country's macroeconomic balance.
Overall, the increase in international reserves is seen as evidence of vigilant economic management and the country's resilience in the face of global challenges.
