Indonesia: BI records decline in foreign exchange reserves in March

Jakarta (ANTARA) – Bank Indonesia (BI) reported that Indonesia’s foreign exchange reserves at the end of March 2022 remained high at US$139.1 billion, albeit decreasing as compared to US$141.4 billion at the end of February 2022.

Executive Director of the Head of the Communications Department of Bank Indonesia Erwin Haryono noted in an official statement here on Thursday that the decline in foreign exchange reserves last month was influenced by the need for payment of the government’s foreign debt.

Despite the decline, Haryono remarked that the position of foreign exchange reserves was equivalent to financing 7.2 months of imports or seven months of imports and servicing government foreign debt and was above the international adequacy standard of around three months of imports.

BI assumes the foreign exchange reserves to be able to support external sector resilience and maintain macroeconomic and financial system stability.

The central bank estimates that foreign exchange reserves will remain adequate, supported by stability and maintained economic prospects.

This condition is in line with various policy responses to promote economic recovery, the director stated.