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Jakarta Post

Forex reserves expected to bounce back after sharp drop

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Sat, June 15 2019   /  12:39 am

Indonesia’s foreign exchange reserves dived deeper in May as the government paid off some external debt and foreign firms in the country needed foreign exchange for dividend payouts, which peaked in the second quarter, Bank Indonesia (BI) recently announced.The value of foreign exchange reserves fell by US$3.94 billion to $120.3 billion in May from $124.3 billion recorded in the preceding month. The monthly drop was the largest since March 2015, when the forex reserves dropped by $3.97 billion. It follows a decline in April, when the forex reserves dropped by around $200 million.The central bank estimated that the latest foreign exchange reserve level was equal to 6.9 months of imports or 6.7 months of imports and payments on short-term external government debt. The current foreign exchange reserve level was well above the international adequacy standard of around three months of impor...