Bank Negara Malaysia Reports International Reserves at US$121.28 Billion as of July 2025
Bank Negara Malaysia (BNM) has announced that Malaysia’s official reserve assets amounted to a substantial US$121.28 billion (at an exchange rate of US$1 = RM4.22) as of the end of July 2025, providing a key indicator of the nation’s financial stability.
The central bank also reported that other foreign currency assets stood at US$603.7 million at the same reporting date.
In line with the rigorous requirements of the International Monetary Fund (IMF) Special Data Dissemination Standard (SDDS) format, BNM stated that the detailed breakdown of international reserves offers crucial forward-looking information.
This information pertains to the size, specific composition, and usability of the reserves and other foreign currency assets.
Furthermore, this data is designed to offer clear guidance on the expected and potential future inflows and outflows of foreign exchange belonging to the federal government and the central bank over the subsequent 12-month period.
In a public statement, Bank Negara Malaysia affirmed that the detailed breakdown of international reserves under the IMF SDDS format clearly indicates that as at end-July 2025, Malaysia’s international reserves remain fully usable, a critical sign for investor confidence.
This comprehensive disclosure framework underscores the central bank’s commitment to transparency and adherence to international best practices in financial reporting.
Detailed Breakdown of Foreign Currency Outflows and Inflows
The central bank provided a precise outline of expected foreign currency outflows and inflows over the upcoming 12 months, detailing short-term debt obligations and managing ringgit liquidity in the money market.
For the next 12 months, Bank Negara Malaysia disclosed that the pre-determined short-term outflows of foreign currency loans, securities, and deposits amount to US$14.65 billion.
This figure notably includes the scheduled repayment of external borrowings by the government and the maturities of foreign currency Bank Negara Interbank Bills, representing known and planned future payments.
Furthermore, BNM reported that the net short forward positions totaled US$21.17 billion as at end-July 2025.
This particular figure is a direct reflection of the central bank’s active involvement in managing ringgit liquidity within the domestic money market, a common tool for influencing short-term interest rates and exchange rate stability.
In adherence to a practice adopted since April 2006, the reported data consciously excludes projected foreign currency inflows that are expected to arise from interest income generated by the reserves and the planned drawdown of project loans.
However, the central bank noted that these projected foreign currency inflows, which are not included in the primary outflow figure, are expected to amount to US$2.68 billion over the next 12 months, providing a potential buffer.
Contingent Liabilities and Central Bank Transparency
Bank Negara Malaysia meticulously clarified the nature of contingent liabilities and underscored its policy of not utilizing complex derivatives such as foreign currency options.
The central bank confirmed that the only contingent short-term net drain on its foreign currency assets is represented by government guarantees of foreign currency debt that is due within a one-year period, a relatively small amounting to US$417.1 million.
This disclosure provides a clear picture of the nation’s short-term potential risks.
BNM further emphasized its conservative and transparent financial policies by stating that there are absolutely no foreign currency loans currently outstanding with embedded options, which are often considered complex financial instruments.
Similarly, the central bank confirmed that it holds no undrawn unconditional credit lines provided by or to other central banks, international organizations, commercial banks, and other financial institutions, simplifying its external financial commitments.
In a final note on its risk management practices, Bank Negara Malaysia added that it explicitly does not engage in foreign currency options vis-à-vis the ringgit, avoiding the speculative use of such derivatives.
This commitment to maintaining a relatively straightforward and highly transparent reserve management structure is a key factor in the overall usability and confidence associated with Malaysia’s international reserves.
