Paying Off Foreign Debt, Foreign Exchange Reserves Shrinked 2.3 Billion Dollars In A Month

JAKARTA - Bank Indonesia (BI) reported that the position of foreign exchange reserves at the end of March 2022 amounted to 139.1 billion US dollars.

Head of the Communications Department Erwin Haryono, this amount moved from the position in February 2022 which amounted to US$141.4 billion. This means that there has been a decline in foreign exchange reserves of USD 2.3 billion in one month.

"The decline in the position of foreign exchange reserves in March 2022 was influenced, among other things, by the need for payment of the government's foreign debt," he said in an official statement on Thursday, April 7.

According to Erwin, the depreciation is still in a normal condition considering that the currently collected value is more than adequate.

"The position of Indonesia's foreign exchange reserves at the end of March 2022 remains high," he said.

In detail, Erwin explained if the foreign exchange reserve position was equivalent to financing 7.2 months of imports or 7.0 months of imports and servicing the government's foreign debt. In fact, the book is above the international adequacy standard of about three months of imports.

"Bank Indonesia views the foreign exchange reserves as capable of supporting external sector resilience and maintaining macroeconomic and financial system stability," he said.

"Going forward, Bank Indonesia views foreign exchange reserves as adequate, supported by stability and maintained economic prospects, along with various policy responses to promote economic recovery," Erwin concluded.