Islamic bonds increase Indonesia’s forex reserves in June 2020

Jakarta (Indonesia Window) – The government’s global sukuk (the bonds based on sharia principles) affect the increase in Indonesia’s foreign exchange reserves in June 2020, Indonesia’s central bank, Bank Indonesia, has stated.

“Indonesia’s foreign exchange reserves at the end of June 2020 amounted to 131.7 billion U.S. dollars, an increase compared to the end of May 2020 valued at 130.5 billion U.S. dollars,” Bank Indonesia’s spokesperson Onny Widjanarko said in a statement on Tuesday.

The foreign exchange reserves are equivalent to financing 8.4 months of imports or 8.1 months of imports and payments of government foreign debts, and stay above the international adequacy standard of about three months of imports.

According to the central bank, the foreign exchange reserves are able to support the resilience of the external sector and maintain the stability of the macroeconomic and financial system in Indonesia.

Bank Indonesia views that foreign exchange reserves remain adequate for the future as they are supported by the maintained stability and economic prospects, along with various responses to the policies on efforts to encourage and recover the economy.

Reporting by Indonesia Window