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Indonesia's foreign exchange reserves drop to $136.2b in April

Jakarta Globe - May 8, 2024

Indah Handayani, Jakarta – Indonesia's foreign exchange reserves dropped from $140.4 billion in March to $136.2 billion the following month, according to Bank Indonesia.

The central bank attributed the decline to the government's payment of foreign debts. Efforts to stabilize the rupiah amid the increasingly uncertain global financial markets also led to a drop in foreign exchange.

According to Bank Indonesia's spokesperson Fadjar Majardi, the current foreign exchange reserves position is equivalent to paying 6.1 months of imports. It is also equivalent to 6 months of imports and government foreign debt payments. This also surpasses the international adequacy standard of 3 months of imports.

"We believe that the foreign exchange reserves are enough to support our external sector resilience, while also ensuring macroeconomic and financial system stability," Fadjar said in a press statement on Wednesday.

Indonesia will likely continue to have adequate foreign exchange reserves as the country keeps its economic stability under control. Bank Indonesia's policy mix will also help maintain this stability, according to Fadjar.

Source: https://jakartaglobe.id/business/indonesias-foreign-exchange-reserves-drop-to-1362b-in-apri