Foreign exchange reserves decline to US$119.8 billion in June

Foreign exchange reserves decline to US$119.8 billion in June

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Jakarta — Indonesia’s foreign exchange reserves slid to US$119.8 billion as of June, lower than the $122.8 billion recorded a month earlier as Bank Indonesia (BI) continued to defend the rupiah against a stronger U.S. dollar. In a statement released on Friday (06/07), the central bank said the decline in foreign exchange reserves in June was mainly driven by the payment of the government’s external debts and stabilization of the rupiah amid greater uncertainty in global financial markets. “BI feels that foreign exchange reserves are still able to support the resiliency of the external sector while maintaining macroeconomic and financial system stability,” BI spokesman Agusman said in a statement. The latest figure is sufficient to finance 7.2 months of imports, or 6.9 months of imports if it includes the payment of the government’s external debts, still higher than international adequacy standards of around three months of imports, BI said. Going forward, the central banks believes the foreign exchange reserves will be able to withstand external shocks, supported by the positive outlook of the domestic economy and positive performance.

Source: thejakartapost.com

 

 

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