Jakarta, IDN Times – Bank Indonesia (BI) noted that Indonesia’s foreign exchange reserves experienced a slight increase in February 2022 to US$141.4 billion.
The increase in the position of foreign exchange reserves in February 2022 was influenced, among other things, by the withdrawal of the Government’s foreign loans as well as tax and service receipts.
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1. The position of Indonesia’s foreign exchange reserves is equivalent to financing 7.5 months of imports
The position of foreign exchange reserves is equivalent to financing 7.5 months of imports or 7.3 months of imports and servicing government external debt, and is above the international adequacy standard of around 3 months of imports.
“Bank Indonesia assesses that the foreign exchange reserves are able to support external sector resilience and maintain macroeconomic and financial system stability,” said Head of the BI Communications Department Erwin Haryono in a statement, Tuesday (8/3/2022).
2. Indonesia’s foreign exchange reserves remain adequate
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Erwin said, Bank Indonesia views foreign exchange reserves as adequate, supported by stability and maintained economic prospects.
“Along with various policy responses to encourage economic recovery,” he said.
3. Indonesia’s foreign exchange reserves fell in January 2022
As previously reported, Indonesia’s foreign exchange reserves at the end of January 2022 reached US$141.3 billion, down from the position at the end of December 2021 of US$144.9 billion.
This decline was influenced, among other things, by the need for payment of government foreign debt and the reduced placement of foreign exchange (forex) banks at BI.
“The decline in foreign exchange placements at the central bank is part of the anticipation of the need for foreign currency liquidity in line with improving economic activity,” said Erwin.
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