Monday, 16 September 2019 | 15:03 WIB

Indonesia Forex Reserves Dip to US$ 120.3 Billion on May

Indonesia Forex Reserves Dip to US$ 120.3 Billion on May (suarainvestor)

JAKARTA, NETRALNEWS.COM - Indonesia's foreign exchange (forex) reserves at the end of May 2019 has reached US $ 120.3 billion, still quite high even though it was lower than the position of $124.3 billion at the end of April, 2019.

The position of foreign exchange reserves is equivalent to financing 6.9 months of imports or 6.7 months of imports and payment of government foreign debt, and is above the international adequacy standard of around 3 months of imports.

"Bank Indonesia assesses that foreign exchange reserves can support the resilience of the external sector and maintain macroeconomic and financial system stability," Onny Widjanarko, Executive Director of the Bank Indonesia Communication Department said in a press release on Thursday (06/13/2019).

He explained that the decline in foreign exchange reserves in May 2019 was mainly influenced by the need for government foreign debt payments and reduced placement of banking foreign exchange at Bank Indonesia in anticipation of foreign exchange liquidity requirements related to the cycle of dividend payments for several foreign companies and ahead of the Lebaran holiday.

Going forward, Bank Indonesia considers foreign exchange reserves to be adequate with the support of stability and a sound economic outlook.