KUALA LUMPUR: Bank Negara Malaysia’s international reserves fell US$18.9bil to US$116bil as at end-December 2014 from the US$134.9bil a year ago.





BNM said on Thursday the reserves, had in ringgit terms, declined by RM36.4bil to RM405.5bil from RM441.9bil during that period.





“The reserves level as at Dec 31, 2014 has taken into account the quarterly adjustment for foreign exchange revaluation changes.





“The reserves position is sufficient to finance 8.4 months of retained imports and is 1.1 times the short-term external debt,” it said.





Data showed the US dollar had strengthened considerably against the ringgit from 3.2945 to a US$1 at end-2013 to 3.4973 at end-2014.





BNM said in 2014, international reserves were supported by higher current account surplus and inflows of foreign direct investment.





“A cumulative unrealised foreign exchange revaluation gain also added to the value of international reserves.





“The offsetting outflows were mainly in the form of reversal of non-resident portfolio investment, direct investment abroad by Malaysian companies, acquisition of foreign portfolio assets by resident institutional investors and net repayment of offshore borrowing by the public sector,” the central bank said.





BNM added the reserves were expected to remain ample in 2015, supported by trade and investment inflows.