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Foreign exchange reserves continue to deflate amid pressure on rupiah
Bank Indonesia (BI) revealed on Friday that Indonesian foreign exchange (forex) reserves dwindled for the third consecutive month in September, but the central bank said the reserve level remained “high”.
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An employee arranges rupiah banknotes on June 23, 2022, at Bank Mandiri in Jakarta. Currencies in Southeast Asia and around the world have dropped against the United States dollar this year as the US Federal Reserve hiked rates. (Antara/Muhammad Adimaja)
B
ank Indonesia’s (BI) foreign exchange (forex) reserves continued to dwindle in September, extending a downward trend that started this March.
BI official Erwin Haryono wrote in a press statement that September reserves were down to US$134.9 billion from $137.1 billion recorded in the previous month.
“Going forward, BI’s foreign exchange reserves will still be sufficient,” Erwin wrote on Friday.
Erwin further explained that the reserves will be sufficient because the economy is stable, and the reserves’ prospects are in a good condition.
September marked another month of decline for the forex reserves since a peak this March when they were recorded at $145.2 billion.
Erwin said the decline was attributable to the government paying off foreign debt as well as BI’s effort to stabilize the rupiah exchange rate.
“[This effort] was taken in anticipation of a spillover effect from increasing global financial market uncertainty,” Erwin said.
