"The position of foreign exchange reserves is equivalent to financing 9.1 months of imports or 8.7 months of imports and servicing the government's foreign debt, and is above the international adequacy standard of about three months of imports," BI's chief executive director of communications, Erwin Haryono, said in a statement released in Jakarta on Tuesday.
BI considers the foreign exchange reserves to be able to support the resilience of the external sector and maintain macroeconomic as well as financial system stability, he added.
According to Erwin, the increase in foreign exchange reserves in August 2021 was mainly due to the additional special drawing rights (SDR) allocation of 4.46 billion SDR, equivalent to US$6.31 billion, received by Indonesia from the International Monetary Fund (IMF).
In 2021, the IMF will increase the allocation of SDR and distribute it to all member countries, including Indonesia, proportionally according to their respective quotas, he informed.
This is intended to support the resilience and stability of the global economy in the face of the impact of the COVID-19 pandemic, build the confidence of economic actors, and strengthen global foreign exchange reserves, Haryono said.
"The SDR allocation is distributed to IMF member countries at no cost," he added.
Looking ahead, the central bank expects foreign exchange reserves to remain adequate, supported by stability and maintained economic prospects, along with various policy responses to promote economic recovery, Haryono said.
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