Indonesia's Foreign Reserves Edge Down Amid Rupiah Stabilization Efforts
(MENAFN) Bank Indonesia revealed on Thursday that the nation's foreign currency reserves experienced a 4.6 billion U.S. dollar decrease, settling at 152.5 billion dollars by the close of April. This decline comes as the central bank actively intervened in the foreign exchange market to bolster the rupiah in the face of increased instability in global financial markets.
Bank Indonesia's executive director of communication, Ramdan Denny Prakoso, explained in a press release that "the decrease in reserves was influenced by the government's foreign debt payments and our exchange rate stabilization policy in response to rising global financial market volatility."
Despite this reduction, Prakoso assured that the current reserve levels remain strong, capable of financing 6.4 months of imports, or 6.2 months of imports combined with foreign debt obligations. This figure comfortably exceeds the international benchmark for reserve adequacy, which stands at three months.
"Bank Indonesia assesses that the foreign exchange reserves can support the resilience of the external sector and maintain macroeconomic and financial system stability," he further commented.
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