Indonesia’s foreign exchange (forex) reserve position stood at US$111.5 billion as of end-November 2016, lower than the end of October 2016 level registered at $115.0 billion, said Bank Indonesia (BI) in press statement. Despite the decline, the reserve asset position at the end-November adequately covered 8.5 months of imports or 8.1 months of imports and servicing of government external debt repayments, well above the international standards of reserves adequacy at 3 months of imports. BI considers the position of official reserve assets is still able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth. The decline in the reserve asset in November 2016 was mainly due to the use of foreign exchange for government external debt repayments and stabilization of rupiah in accordance with its fundamental. Bank Indonesia envisages the decline in reserve assets is temporary, mainly supported by optimism on the positive domestic economy, improved export performance, and the conducive development of global financial market. Looking ahead, BI will continue to maintain reserve adequacy to support preserved macroeconomic and financial system stability.
Menu