Indonesias forex reserves down $1.86 billion: BI

Jakarta (ANTARA News) – Indonesias foreign exchange reserves fell US$1.86 billion to US$123.09 billion in late June 2017 from US$124.95 billion a month earlier as banks withdrew foreign currency liquidity to meet needs during Idul Fitri holidays, according to Bank Indonesia (BI).

The drop in foreign exchange reserves will be temporary as the banks used the foreign currency liquidity in June 2017 as standby fund, Executive Director of BI Communication Department Tirta Segara said in an official statement released on Friday.

“The foreign exchange reserves at the end of June 2017 are still enough to finance 8.9 months of imports or 8.5 months of imports and government external debt repayments and are still above the international adequacy standard of 3 months of imports,” he said.

The central bank believed the foreign exchange reserves will increase in the future as the worlds three leading rating agencies — Fitch, Moodys Service and Standard and Poors — have awarded the country an investment grade rating.

On the other hand, the conducive global financial market will hopefully help increase the countrys foreign exchange reserves, he said.

“The central bank will keep the adequacy of the countrys foreign exchange reserves to ensure the stability of macro economy and financial system,” he said.

Source: Antara News