Kuala Lumpur, 9 March 2026 – Malaysia’s international reserves climbed to their highest level in more than a decade, strengthening the country’s external financial position as foreign exchange and gold holdings increased, according to data from Bank Negara Malaysia.
The central bank’s reserves stood at US$128.3 billion as of Feb 27, 2026, marking the highest level in over 11 years, supported by gains in foreign currency assets and gold holdings.
The increase represents a US$1.4 billion month-on-month rise, reflecting continued accumulation of reserves despite capital outflows from financial markets.
Forex Reserves Continue Uptrend
Foreign currency reserves, the largest component of Malaysia’s international reserves, extended their upward trend for an 11th consecutive month, rising to US$112.5 billion.
Net foreign-exchange reserves also climbed to a 44-month high of US$79.5 billion, reflecting improved liquidity conditions and a smaller predetermined short-term net drain on reserves.
The stronger reserve position comes even as global financial markets experience volatility, suggesting the central bank has continued to rebuild buffers that can support the currency and financial system during periods of external stress.
Gold Holdings Reach Record Level
Malaysia’s gold reserves also increased, reaching a record US$6.1 billion, representing a 3.7% month-on-month increase and an 87.6% rise year-on-year.
The rise reflects both higher global gold prices and additional purchases by the central bank, which increased its holdings to 1.36 million fine troy ounces, the first increase since 2018.
Central banks globally have been boosting gold reserves in recent years as part of a broader strategy to diversify reserve assets and reduce exposure to currency volatility.
Import Cover and External Debt Buffer
Despite the rise in reserves, Malaysia’s import cover slipped slightly to 4.7 months of imports, compared with 4.8 months previously, while the reserves-to-short-term external debt ratio remained steady at 0.9 times.
Economists note that these levels remain within a comfortable range, indicating the country retains sufficient external liquidity buffers to support trade flows and financial stability.
Ringgit Strengthens on Softer US Dollar
The rise in reserves coincided with a strengthening of the Malaysian currency.
The ringgit gained 3% in February, extending January’s 1.5% increase, as the U.S. dollar weakened amid shifting investor sentiment.
The dollar-ringgit exchange rate averaged 3.91 in February, its strongest level since April 2018.
Analysts say the stronger currency partly reflects reduced global demand for the U.S. dollar as investors reassess economic and geopolitical risks.
Strengthening Malaysia’s External Position
Malaysia’s international reserves have been steadily recovering after earlier declines linked to global financial tightening and currency volatility.
The renewed build-up of reserves provides the central bank with additional capacity to manage currency fluctuations and maintain confidence in the financial system.
Reserves of this size are also seen as an important signal of economic resilience, particularly at a time when global markets are facing heightened uncertainty due to geopolitical tensions and shifting capital flows.
For policymakers, maintaining strong external buffers remains a key component of Malaysia’s strategy to safeguard financial stability and support sustainable economic growth.
