Malaysian Ringgit: Stronger BNM reserves back stability – UOB

FXStreet Insights Team FXStreet

UOB economists Julia Goh and Loke Siew Ting note that Bank Negara Malaysia’s (BNM) foreign reserves climbed to USD129.7bn at end-April 2026, the highest since 2014, providing a stronger buffer for the Malaysian Ringgit (MYR). Although the central bank’s net short FX swap position has widened, they judge it manageable and see the improved reserve position as supportive for currency stability and investor confidence.

Higher reserves bolster MYR resilience

"Bank Negara Malaysia (BNM)’s foreign reserves rose by USD3.1bn m/m to record USD129.7bn as at end-Apr, marking the highest level since Aug 2014. Cumulatively, foreign reserves rose by USD4.2bn in Jan-Apr (vs +USD2.5bn in Jan-Apr 2025)."

"It is sufficient to finance 4.7 months of imports of goods & services and is 0.9x total short-term external debt."

"On the external front, Malaysia’s reserve position strengthened further. While BNM’s net short FX swap position widened to USD23.2bn (18.3% of reserves), this remains manageable compared to high of USD29.3bn (25.5% of reserves) in Jul 2024."

"Overall, the improved reserve position should provide confidence in Malaysia’s ability to withstand external volatility, supporting both currency stability and investor sentiment."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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