Indonesia’s foreign exchange reserve declined by US$1.5 billion to $118.3 billion in July, Bank Indonesia (BI) reported on Tuesday, lower than $119.8 billion reserve in June as the central bank continues its market intervention to prevent the rupiah from sliding further against the US dollar.

“The foreign exchange reserve decline in July was primarily due to payment of the government’s external debt and the effort to stabilize the rupiah amid high uncertainties in the global market,” BI spokesman Agusman said in a statement posted on the central bank’s website.

The foreign exchange reserve's latest figure was equivalent to payment of 6.9 months of imports or 6.7 months' payment of imports and the government’s external debt, still exceeding the international adequacy standards of three months of imports.

“Bank Indonesia views that the foreign exchange reserve was still able to support the external sectors’ resiliency and maintain macroeconomic and financial system stability,” said Agusman.

Agusman added that the central bank believed that the foreign exchange reserve would still be able to support the stability of the economy because the country’s outlook as well as export performance remain positive. (bbn)