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JAKARTA (TheInsiderStories) – The Indonesia’s official foreign exchange reserve position stood at US$127,76 billion in July 2017 or increases than position at the previous month at $123.09 billion, partly driven by government’s global bond, Bank Indonesia (BI) data shows.

Executive Director of Communication Department of Bank Indonesia (BI) Agusman said, the increase of the foreign exchange reserve was primarily attributable to foreign exchange receipts, among other from government’s issuance of global bonds, tax revenues and government oil & gas export proceeds, as well as auction of Bank Indonesia foreign exchange bills.

“The foreign exchange receipts surpassed the uses of foreign exchange primarily for repayments of government external debt and Bank Indonesia foreign exchange bills matured during the period,” he said in a press statement.

The reserve asset position in July 2017 adequately covered 9 months of imports or 8.7 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 considers the official reserve assets are able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth,” he added.

China Forex Up to $3 Trillion

In other hand, China’s official foreign exchange reserves rose by $24 billion, compared to the previous month, reaching a level of $3.081 trillion in July 2017. Rajiv Biswas, Asia Pacific Chief Economist for IHS Markit said the improvement in China’s forex in July reflects the ramping up of efforts by Chinese authorities to curb capital outflows through clamping down on corporate outbound merger & acquisition deals as well as tougher regulations on private individual remittances for foreign property purchases.

“Recent US dollar weakness against the euro also helped to boost the USD value of China’s FX reserves in July.. Improving economic growth momentum in China has also boosted investor sentiment about CNY, with strong Q2 GDP growth, sustained expansion in construction spending and robust retail sales,” he said

As a result of the strong economic data, Rajiv said IHS Markit has revised up its China GDP growth forecast for 2017 and 2018. (RF)

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