International Reserves of BNM as at 31 December 2012

The international reserves of Bank Negara Malaysia amounted to RM427.1 billion(equivalent to USD139.7 billion) as at 31 December 2012. The reserves level as at 31 December 2012 has taken into account the quarterly adjustment for foreign exchange revaluation changes. The reserves position is sufficient to finance 9.5 months of retained imports and is 4.2 times the short-term external debt.
 
For the year 2012 as a whole, the international reserves rose by RM3.8 billion to RM427.1 billion (end-2011: RM423.4 billion).  The higher reserves reflected the continued current account surplus amidst inflows of foreign direct investment and portfolio capital. However, these inflows were partly offset by direct investment abroad by Malaysian companies as well as outflows of other investments. In addition, there was also a cumulative unrealized foreign exchange revaluation loss following the strengthening of ringgit against selected major and regional currencies during the year.
 
Malaysia’s international reserves, which are usable and unencumbered, are expected to continue to remain at a comfortable level in 2013. The level of reserves will be supported by trade and investment inflows.