"The decline followed larger governments foreign debt servicing and spending of foreign exchange in a bid to stabilize rupiah," Executive Director of Bank Indonesia Tirta Segara said here on Monday.
Tirta said the central bank is set to remain in the market to keep rupiah from diving lower against the US dollar in order to sustain macro economic stability and financial system.
Income in foreign exchange mainly from the governments Samurai Bonds could curb further decline in the rupiah value against the US dollar, Tirta said.
He said the position of the countrys foreign exchange reserves by the end of August was still enough to finance imports for 7.1 months or imports and foreign servicing for 6.9 months.
The position of the foreign exchange reserve was still above the standard of international adequacy ratio of enough to finance three month imports
"Bank Indonesia is convinced that the reserve could still sustain economic growth and ward off external pressure," he said.
Earlier or by the end of July, 2015, the foreign exchange reserves declined by US$400 million from US$108 billion by the end of June. (*)
Editor: Heru Purwanto
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