Indonesia`s foreign exchange reserves down US$700 million

Executive Director of the Central Bank`s Communication Department Tirta Segara described the the foreign exchange reserves as relatively stable despite the decrease.
Jakarta (ANTARA News) - Bank Indonesia said the countrys foreign exchange reserves fell US$700 million in a month to US$115 billion by the end of October this year.

Executive Director of the Central Banks Communication Department Tirta Segara described the the foreign exchange reserves as relatively stable despite the decrease.

The reserves were still enough to finance imports for 8.8 months or 8.4 months of imports plus foreign debt servicing, Tirta said, adding "It is still well above the international adequacy standard of three months of imports.

"The decline in the foreign exchange reserve was caused by a number of factors including shortfall in tax revenues," he said.

The position of foreign exchange reserves is also determined by foreign exchange earning form tax revenues and foreign exchange bonds, he added.

The central bank said the countrys foreign exchange reserve would be enough to support resistance to external pressure and to sustain economic growth, he said.(*)

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