Forex Reserves at US$ 103.6 Billion in May 2016

Jakarta, InfoPublik - Foreign exchange reserves at the end of May 2016 was recorded at US$ 103.6 billion; lower than that of end of April 2016 at US$ 107.7 billion.

"Despite the decline, the forex remains sufficient to finance 7.9 months of imports or 7.6 months of imports and government’s foreign debt payments. It is higher than the international standards of reserves adequacy at 3 months of imports," said of Bank Indonesia’s Communications Department Executive Director Tirta Segara in Jakarta, Wednesday (6/8).

According to him, Bank Indonesia assessed the forex sufficient to support external sector resilience and maintaining Indonesia’s sustainable economic growth in the future.

He explained that the decline was mainly influenced by the use of forex for foreign currency obligations repayments in accordance to seasonal pattern. It resulted in decreased banking forex placement at Bank Indonesia.

In addition, the decline was also affected by foreign exchange usage for foreign debt payment and exchange rate stabilization in accordance with the fundamentals.

He added that Bank Indonesia estimates that the decline is temporary.

This is supported by the favorable global financial market conditions, as reflected in the foreign currency’s increased availability in the domestic foreign exchange market.

"In the future, Bank Indonesia will continue to maintain adequate reserves to support macroeconomic stability and financial system," he concluded. (Translator: Wilda Stiana)