Malaysia's forex reserves rise again after months of decline

Kuala Lumpur

MALAYSIA'S international reserves rose in the first two weeks of September in a welcome boost to the country's weakened external position, indicating the central bank may have eased off slightly from defending an embattled ringgit currency.

Currency reserves increased to US$95.3 billion as at Sept 15, Bank Negara Malaysia (BNM) said on Tuesday, from US$94.7 billion on Aug 28. In a statement, BNM said the reserves are sufficient to finance 7.3 months of retained imports, and are 1.1 times the short-term external debt. Malaysia's reserves have shrunk by 21 per cent or US$25.4 billion this year as its currency, the ringgit, depreciated over 18 per cent against the greenback - the worst-performing Asian currency this year.