Foreign Exchange Reserves Drop By 100 Million Dollars In A Month, Bank Indonesia : Relatively Stable

JAKARTA - Bank Indonesia (BI) reported that the position of foreign exchange reserves (cadev) at the end of May 2022 was 135.6 billion US dollars. This amount decreased by about 100 million US dollars when compared to the book at the end of April 2022 which was 135.7 billion US dollars.

Despite the depreciation, BI Head of Communications Department Erwin Haryono said that the value of the cadev was actually relatively stable.

"The development of the foreign exchange reserve position in May 2022 was influenced, among other things, by oil and gas foreign exchange receipts, taxes and services, as well as the need for payment of government foreign debt," he said in a press statement on Wednesday, June 8.

According to Erwin, the value of Indonesia's foreign exchange reserves is equivalent to financing 6.8 months of imports or 6.6 months of imports and servicing the government's foreign debt.

"This is above the international adequacy standard of about 3 months of imports," he said.

Erwin ensured that the central bank would continue to monitor the development of foreign exchange reserves to ensure that foreign payment transactions can run without problems.

"Bank Indonesia considers the foreign exchange reserves to be able to support the resilience of the external sector and maintain 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.