International Reserves of BNM as at 31 December 2010

The international reserves of Bank Negara Malaysia amounted to RM328.6 billion (equivalent to USD106.5 billion) as at 31 December 2010. The reserves level as at 31 December 2010 has taken into account the quarterly adjustment of foreign exchange revaluation gain, following the strengthening of most major currencies against the ringgit during the quarter. The reserves position is sufficient to finance 8.5 months of retained imports and is 4.1 times the short-term external debt.

For the year 2010 as a whole, the international reserves declined marginally by RM2.7 billion to RM328.6 billion (end-2009: RM331.3 billion). During the year, the current account remained in surplus and there were inflows of foreign direct investments and portfolio capital. However, these inflows were partly offset by direct investments abroad as well as net private sector outflows. In addition, there was also a cumulative unrealised foreign exchange revaluation loss following the strengthening of the ringgit against most major currencies during the year.

Malaysia's international reserves, which are usable and unencumbered, are expected to continue to remain at a comfortable level in 2011. The level of reserves would be supported by the continued trade surplus as well as inflows of foreign direct investments.

Source: http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2189

Bank Negara Malaysia, 7 January 2011