BI: RI`s forex reserves surpass US$100 billion

"The foreign exchange reserves have surpassed US$100 billion and with it it means we have `an insurance` to cushion upheavals in the global financial markets," Darmin said.
Jakarta (ANTARA News) - Indonesia`s foreign exchange reserves reached US$100 billion early this month, Bank Indonesia (BI) Governor Darmin Nasution said here on Wednesday.

"The foreign exchange reserves have surpassed US$100 billion and with it it means we have `an insurance` to cushion upheavals in the global financial markets," he said.

He said the fast growing foreign exchange reserves were proof that Indonesia is on the right track of directing towards an investment grade.

"The achievement has given increasing confidence that we have been on the right track and are leading towards an investment grade," he said.

On February 25 Darmin said the country`s foreign exchange reserves could reach up to US$120 billion until the end of the year.

He said the country`s foreign exchange reserves had been quite strong to cushion sudden reversal.

"Actually we have already tried to calculate the foreign exchange estimates. We cannot set the right amount because there is no formula for it but only its estimate and it is actually US$90 billion," he said.

Vice President Boediono meanwhile said the foreign exchange reserves are a self-insurance for the country.

"In a volatile situation we must have an insurance. As no one sells an insurance plan to protect against possible crisis we therefore make our self-insurance plan," he said.

He said however that the foreign exchange reserves were not an optimal solution to overcome an economic crisis.

"Indeed it is not an optimal solution for the national economy or global economy because the money is stationary but it must be like that because of the uncertainty we are facing," he said.(*)

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