Forex Reserves Down by $2.06 Billion to Stabilize Rupiah

JAKARTA (TheInsiderStories) — Indonesia’s foreign exchange reserves declined by $2.06 billion to $126.0 billion at the end of March as the central bank had to stabilize the rupiah exchange rate and the government had to pay a significant amount of foreign debt.

The rupiah hit a two-year low of 13,800 against the dollar in March and stayed below that level until early April.

According to the central bank, the current position of the forex reserves is enough to help finance the country’s imports for 7.9 months.

“The drop of forex reserves as of March 2018 was affected by the use of reserves to fund the goverment’s foreign debt and to stabilize the rupiah currency rate, amid uncertainty in the global financial market,” Bank Indonesia said in a statement on Friday (06/04).

The central bank remains upbeat that forex reserves to continue improving and exports performance will likely be positive.

The country’s reserves stood at $128.06 billion at the end of February.