The current reserve level is equivalent to financing 9.7 months of imports or 9.3 months of imports and servicing of government external debt and is above the international adequacy standards of around three months of imports.
"Bank Indonesia considers the foreign exchange reserves to be capable of supporting external sector resilience and maintaining macroeconomic and financial system stability," Executive Director of the Communication Department of Bank Indonesia (BI) Onny Widjanarko noted in a statement in Jakarta on Friday.
Widjanarko explained that the decline in foreign exchange reserves in October 2020 was influenced by the payment of government foreign debt, among others.
Widjanarko believes that in future, BI views the foreign exchange reserves as sufficient, supported by stability and maintained economic prospects in line with various policy responses to promote economic recovery.
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