Foreign Exchange Reserves Shrinking 1 Billion Dollars as Government Pays Debt, BI: We’re Okay

Illustration (Photo: Doc. Antara)

JAKARTA – Bank Indonesia reported that foreign exchange reserves at the end of April 2023 were recorded at USD 144.2 billion.

Head of the BI Communication Department Erwin Haryono said that this position was down compared to March 2023 of USD 145.2 billion. This means that foreign exchange reserves depreciated by USD 1 billion within one month.

"The decline in the position of foreign exchange reserves in April 2023 was partly influenced by the need to pay off the government's foreign debt," he said in a press statement today, Monday, May 8.

According to Erwin, the reduction in foreign payment instruments was also influenced by the need for foreign currency liquidity in line with anticipation for National Religious Holidays.

It was stated that the foreign exchange reserve gains until last month were equivalent to financing 6.4 months of imports or 6.3 months of imports and servicing the government's foreign debt.

“This is above the international adequacy standard of about 3 months of imports. Bank Indonesia assesses that these foreign exchange reserves are able to support external sector resilience and maintain macroeconomic and financial system stability," he said.

Erwin explained that Bank Indonesia views that foreign exchange reserves remain adequate, supported by stability and well-maintained economic prospects.

"This optimistic attitude is in line with various policy responses in maintaining macroeconomic and financial system stability in order to support the process of national economic recovery," he concluded.