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Indonesia's foreign reserves decline to $123.09 billion in June
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Bank Indonesia (BI) headquarters in Central Jakarta. The central bank announced on Friday the latest foreign reserves figure of US$123.09 billion. (Kompas.com)
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ndonesia’s foreign exchange reserves declined in June by US$1.86 billion compared to in the previous month because of higher liquidity demand in the domestic banking market, according to the central bank.
The country recorded foreign reserves of $123.09 billion in June, a decrease from $124.95 billion in May. The figure was equal to eight and a half months of imports and the government’s external debt payments and is still sufficient to support the country’s external endurance and future economic growth, Bank Indonesia (BI) said.
“The decline in foreign exchange reserves in June 2017 was mainly caused by rising demand for foreign exchange liquidity in banks during the long holiday of Idul Fitri,” the central bank wrote in a statement on Friday evening.
The central bank considered that the decline was temporary as the banks’ rising demand was only to support its cash buffers. As it continues its monitoring, BI was convinced that the global financial markets would further support stronger foreign reserves with exports remaining a good prospect.
The domestic economy also retained a positive perception following the country’s rating upgrade to investment grade from S&P Global Ratings, the central bank said. (ags)
