The foreign exchange reserves are sufficient to finance 10.5 months of imports and 10 months of imports and the government’s foreign debt repayments, Chief of the BI Communication Department Erwin Haryono noted in a written statement released on Friday.
The January 2021 reserves level is also above the international adequacy standard of three months of imports, he remarked.
"Bank Indonesia believes the foreign exchange reserve will be able to support the external sector's resilience and maintain macroeconomic stability and the financial system," he explained.
Haryono attributed the rise in foreign exchange reserves to the issuance of the government's global bonds and tax receipts in early 2021.
Looking ahead, BI believed that the foreign exchange reserves will remain sufficient, supported by manageable stability and economic prospects in line with various responses to the government's policy to push economic recovery, he remarked.
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