Indonesia' foreign exchange reserves rose to US$135.1 billion in July 2020 from previous month stood at $131.7 billion, the central bank reported today (08/07) - Photo: Special

JAKARTA (TheInsiderStories) – Indonesia’ foreign exchange reserves rose to US$135.1 billion in July 2020 from previous month stood at $131.7 billion, the central bank reported today (08/07). The position is equivalent to financing 9.0 months of imports or 8.6 months of imports and servicing of government external debt, and is above the international adequacy standard of around three months of imports.

Bank Indonesia (BI) said, the increase in the reserves was influenced by the issuance of global bonds and withdrawal of government loans. Going forward, the Bank views that forex reserves will remain adequate, supported by stability and a maintained economic outlook, along with various policy responses to promote economic recovery.

The central bank also reported at the end of this week Indonesian Rupiah closed at 14,580 per US Dollar, The 10-year state bond yield fell to 6.76 percent, yield of US Treasury Note with 10 years tenure increased to the level of 0.536 percent, five-year credit default swaps premium fell to 106.81 basis points as of August 6 from 113.65 basis points as of July 31.

Based on transaction data from August 3 – 6, foreign investors has sold Rp890 billion of Indonesian assets. In detail, net selling on the stock market amounting to Rp1.97 trillion and net buying on the government bond market worth of Rp1.08 trillion.

On the inflation rate, BI reported, based on the Price Monitoring Survey in the first week of August 2020, the inflation is estimated at 0.01 percent month to month (MoM), on a calendar year basis is 0.99 percent, and an annualized rate of 1.39 percent compared to last year (YoY).

The main contributors to inflation during the reporting period included gold jewelry at 0.09 percent, red chilies at 0.03 percent, cooking oil, mackerel and cayenne pepper each amounting to 0.0 percent. While, the commodities that contributed to deflation were chicken meat by -0.11 percent, red onions -0.06 percent, eggs and oranges each by -0.02 percent , and tomatoes at -0.01 percent.

Bank Indonesia assured will continue to strengthen coordination with the government and relevant authorities to closely monitor the dynamics of the spread of COVID-19 and its impact on the Indonesian economy, as well as further policy coordination steps that need to be taken to maintain macroeconomic and financial system stability and the economic growth remains good and resilient.

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