Economist E.Tanuwidjaja at UOB Group reviewed the recent performance of FX Reserves in Indonesia.
“Indonesia’s October foreign exchange reserves surged by USD2.4bn to USD126.7bn from USD124.3bn in the previous month. The latest reserve level was equivalent to 7.4 months of import financing or 7.1 months of imports, and payments of government external debt; which is well above the international adequacy standard of around 3 months of imports. The increase in October’s foreign exchange reserves was driven by the government’s global bond issuance, as well as oil & gas and other foreign exchange receipts. Bank Indonesia (BI) assessed that foreign exchange reserves will remain adequate, supported by the foreign exchange stability and solid domestic economy prospect”.
“Even though export outlook is still rather dim this year, we might see a further moderate build-up in FX reserves in light of the “phase one” US-China trade deal and the return of investor confidence following President Joko Widodo’s inauguration and 2019–2024 cabinet announcement, which may result in higher capital inflow. Indonesia’s stable and low inflation is also another key factor as it helps the central bank in maintaining the exchange rate stability”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.