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Jakarta Post

Forex reserves recover by $2b in November

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, December 10, 2018   /   02:32 pm
Forex reserves recover by $2b in November The Bank Indonesia logo marks the gate of the central bank's headquarters in Jakarta. (Antara/File)

Bank Indonesia (BI) has announced a US$2 billion increase in foreign exchange reserves in November due to capital inflows from oil and gas exports and other foreign exchange revenue. The inflows exceeded outflows for foreign debt service.

The foreign exchange reserves stood at $117.2 billion at the end of November, up from $115.2 billion a month earlier.

The central bank explained that the foreign exchange reserves were sufficient to cover 6.3 months of imports plus debt installments.

Meanwhile, the international standard for foreign exchange sufficiency is three months’ worth of imports.

“BI notes that the foreign exchange reserves can support economic resilience [in the face of] external pressure and maintain macroeconomic and financial system stability,” said BI spokesman Junanto Herdiawan, as reported by kontan.co.id on Monday.

In November, BI did not need to spend much foreign exchange, because the rupiah was holding up stronger against the United States dollar. On Nov. 30, the rupiah changed hands at Rp 14,399 per US dollar, before weakening slightly in early December.

BI monetary management department head Nanang Hendarsah said the rupiah was supported by fast capital inflows as external pressure was lessening.The central bank recorded capital inflows of Rp 35 trillion ($2.41 billion). Meanwhile, foreign direct investment in November also reached the highest figure of 2018 at $4.3 billion. (bbn)