"Bank Indonesia assesses that foreign exchange reserves are capable of supporting external sector resilience and maintaining macroeconomic and financial system stability," Executive Director of the Communication Department of Bank Indonesia (BI) Onny Widjanarkoo noted in a statement in Jakarta on Wednesday.
The latest figure was sufficient to finance 9.5 months of imports or 9.1 months of imports and payment of the government’s external debt and stood above the international adequacy standards of around three months of imports.
Widjanarkoo expounded that the decline in foreign exchange reserves in September 2020 was influenced by payment of the government’s external debt and the need for stabilization of the rupiah exchange rate amidst high uncertainty in global financial markets.
In future, BI considers the foreign exchange reserves to remain adequate, supported by economic stability and a maintained economic outlook, coupled with various policy responses to promote economic recovery. Related news: Rupiah strengthens against dollar on forex reserve hike
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