Exchange Rates and International Reserves

Tuesday, 19 June 2012 03:59

In April, the ringgit exhibited a mixed performance against the currencies of Malaysia's major trading partners. The ringgit appreciated against the US dollar, Chinese renminbi and the euro, but depreciated against the Singapore dollar and the Japanese yen. The ringgit and most other regional currencies appreciated against the US dollar as investor demand for the region's financial assets increased.

The ringgit was also supported by the release of strong February export growth data for Malaysia.

In May, the ringgit along with other currencies depreciated as ongoing uncertainties over the European sovereign debt crisis prompted the unwinding of holdings of assets from several emerging markets. The international reserves of Bank Negara Malaysia stood at RM417.5 billion (equivalent to USD136.1 billion) as at 15 May 2012, sufficient to finance 9.3 months of retained imports and is 4.1 times the short-term external debt.

Source: Bank Negara Malaysia (Central Bank of Malaysia)