Indonesia’s Forex Reserves Drops to US$135.2B in October

Bank Indonesia (BI) reported the country' foreign exchange reserves lowered to US$133.7 billion in October from September stood at $135.2 billion - Photo: Special

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) reported the country’ foreign exchange reserves lowered to US$133.7 billion in October from September stood at $135.2 billion. The position is equivalent to financing 9.7 months of imports or 9.3 months of imports and servicing of government external debt, and is above the international adequacy standard of around 3 months of imports.

“Bank Indonesia assesses that the foreign exchange reserves are capable to support the external sector resilience and maintaining the macroeconomic and financial system stability,” said the central bank in an official statement on Friday (11/06).

BI says, the decline of the reserves was partly influenced by the payment of government external debt. The central bank also reported Indonesian Rupiah has improved to 14,250 over the Greenback on Friday, after stayed in the range of 14,500 – 14,700 a US Dollar in recent weeks.

The 10-year state bond’ yield was stable at 6.39 percent and Indonesia’ five-year credit default swaps premium fell to 82.64 basis points as of Nov. 5 from 97.96 basis points as of Oct. 30. During last week, said the Bank, total transactions by foreign investors on the financial market recorded Rp3.81 trillion, with a net purchase of Rp3.87 trillion on the government bond market and a net sale on the stock market of Rp0.06 trillion.

While, based on the Price Monitoring Survey in the first week of November, the inflation rate in this month is estimated at 0.18 percent compared to previous month (MoM). With these developments, the inflation forecast for November is estimated at 1.14 percent on a calendar year and on an annual basis at 1.50 percent.

The main contributors to inflation were broiler chicken at 0.08 percent (MoM), red chili at 0.03 percent (MoM), eggs and shallots 0.02 percent (MoM), and cayenne pepper, and cooking oil 0.01 percent (MoM). While, commodities was experrienced deflation, came from air transport tariffs of -0.02 percent (MoM) and gold jewelery at -0.01 percent (MoM).

Written by Editorial Staff, Email: theinsiderstories@gmail.com