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Indonesia's FX reserves in June robust despite Brexit woes
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A man looks at a bank advertisement displaying the Great British Pound and US Dollar in downtown Seoul, South Korea, on June 28. (Associated Press/Lee Jin-man)
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ndonesia’s central bank registered a 6 percent increase in its foreign exchange reserve to US$109.8 billion at the end of June, despite the volatile rupiah during the last week of June due to Brexit woes.
On June 24, the Indonesian currency was down more than 1 percent against the US dollar, falling below the psychological level of Rp 13,400. Indonesian reserves, as the main source of funds for Bank Indonesia (BI) to intervene in the market to maintain a stable currency, stood at $103.6 billion in May.
The reserve position in June could adequately cover 8.4 months of imports or 8.1 months of imports and the servicing of government external debt, well above the international standards of reserve adequacy at 3 months of imports, BI spokesperson Tirta Segara said.
“The increase was attributable to foreign exchange receipts primarily from the issuance of government global bonds, the auction of BI foreign exchange bills, tax revenues and oil & gas export proceeds,” he said in a press statement in Jakarta on Thursday.
The receipts, he further said, included the withdrawal of government loans. It outweighed the use of foreign exchange for repayments of government external debt and BI foreign exchange bills that matured during the period, among other things.
Bank Indonesia has said the position of official reserve assets was able to strengthen the resilience of the external sector and maintain the sustainability of Indonesian economic growth. (ags)
