Indonesia’s foreign exchange reserves rises in June, booked at 136.4 bln USD

The position of foreign exchange reserves is equivalent to financing 6.6 months of imports or 6.4 months of imports and servicing of government external debt, and is above the international adequacy standard of around three months of imports.

 

Jakarta (Indonesia Window) – Indonesia’s foreign exchange reserves increased in June 2022 to 136.4 billion U.S. dollars compared to May 2022 which was recorded at 135.6 billion dollars, according to a report by Bank Indonesia (BI).

The increase in the position of foreign exchange reserves in June 2022 was influenced, among other things, by the issuance of global bonds or government global bonds as well as tax and service receipts, Chief Executive Director of BI’s Communications Department Erwin Haryono said in an official statement here on Thursday.

The position of foreign exchange reserves is equivalent to financing 6.6 months of imports or 6.4 months of imports and servicing of government external debt, and is above the international adequacy standard of around three months of imports.

Therefore, BI considers the foreign exchange reserves to be able to support the resilience of the external sector as well as maintain macroeconomic and financial system stability.

The central bank views that foreign exchange reserves will remain adequate in the future, supported by stability and maintained economic prospects, along with various policy responses to promote economic recovery.

Previously, on June 2, the government successfully issued the State Bonds in foreign currencies (global bonds) denominated in Japanese yen (Samurai Bonds) for the first time in 2022.

The issuance was carried out amid volatile financial market conditions due to the impact of rising interest rates and tightening global monetary policy as well as rising geopolitical tensions.

The issuance of Samurai Bonds also managed to score a benchmark size of 81 billion Japanese yen for the eighth time since 2015. In this publication, four series were issued, namely RIJPY0625, RIJPY0627, RIJPY0629, RIJPY0632.

Reporting by Indonesia Window