TEMPO.CO, Jakarta - Indonesia’s foreign exchange reserves was up by USD3 billion to USD119.9 billion as of end-February 2017. The increase was attributable to, among others, the stability of the rupiah against foreign currencies that resulted in the lack of use of foreign exchange reserves for monetary operations.
“Since 2016, exchange rate volatility has improved significantly up until the turn of the year. As of now, exchange rate volatility is under control so far this year,” Bank Indonesia (BI) deputy director for economic and monetary policy Riza Tyas said yesterday.
In its official statement, Bank Indonesia also mentioned other factors such as tax revenues and government oil & gas export proceeds, withdrawal of government foreign loans, as well as auction of Bank Indonesia foreign exchange bills (SBBI).
The reserve asset position at end-February 2017 adequately covered 8.9 months of imports or 8.5 months of imports and servicing of government external debt repayments, well above the international standards of reserves adequacy at 3 months of imports, Bank Indonesia communication department executive director Tirta Segara said.
“Bank Indonesia considers the official reserve assets are able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth,” Tirta said.
ANTARA
