BI: Indonesia Foreign Exchange Reserves Drop By USD1.86 Billion
9 July 2017 15:50 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) reported that Indonesia’s foreign exchange reserves dropped by 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 Eid holidays.
The drop in foreign exchange reserves will be temporary as the banks used the foreign currency liquidity in June 2017 as standby fund, according to BI Executive Director of Communication Department Tirta Segara on Friday.
Read: Bank Indonesia Predicts Slower Growth in Q2
"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.
BI also believed the foreign exchange reserves would 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 country’s foreign exchange reserves, he said.
"BI will keep the adequacy of the country’s foreign exchange reserves to ensure the stability of macro economy and financial system," Tirta concluded.
INDRA ARIEF PRIBADI | ANTARA