Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
The foreign exchange reserves of Indonesia fell USD $4.1 billion to USD $103.6 billion in May 2016 because part of the assets were used for foreign debt repayments while Indonesia's central bank (Bank Indonesia) used part to support the rupiah that had come under severe pressure in the last two weeks of May due to growing speculation about a sooner-than-expected US interest rate hike and sliding oil prices (these sentiments would reverse in the first week of June, giving rise to a strengthening rupiah).
In a statement, Bank Indonesia noted that the current reserve asset position can adequately cover 7.9 months of imports or 7.6 months of imports and servicing of government foreign debt repayments, well above the international standards of reserves adequacy at three months of imports.
The drop in the nation's foreign exchange reserves that occurred in May is expected to a temporary phenomenon because unrest on the global financial markets has somewhat eased now Federal Reserve officials' statements have become somewhat "dovish".
Foreign Exchange Reserves Indonesia: