Indonesia’s Foreign Exchange Reserves Grow to USD $100.7B in January 2014
Amid an improving trade balance, Indonesia’s foreign exchange reserves rose to USD $100.7 billion at the end of January 2014, according to a press release of Indonesia's central bank (Bank Indonesia). Compared to December 2013, the reserves increased USD $1.3 billion. These reserves are sufficient to finance 5.7 months of imports or 5.6 months of imports and servicing of government external debt, which is well above the international standard of reserve adequacy at 3 months of imports.
Bank Indonesia stated that these official reserve assets are adequate to support the external sector resilience as well as the sustainability of Indonesia's economic expansion.
In December 2013, Indonesia recorded a trade surplus of USD $1.52 billion - the third consecutive monthly trade surplus - particularly supported by increased mineral exports ahead of the implementation of a ban on unprocessed mineral exports. Although still fragile, the recent monthly trade surpluses are welcome as the country has had to cope with a wide current account deficit, thus hollowing the country's reserve assets while placing downward pressure on the rupiah exchange rate.
Indonesia's Foreign Exchange Reserves 2008-2014:
¹ in billion US dollar
² at end January 2014
Source: Bank Indonesia
• Despite December Trade Surplus Indonesia Posted $4.06B Deficit in 2013
• Indonesia’s Foreign Exchange Reserves Rise to USD $99.4 Billion at End-2013
• Analysis of Indonesia's 5.78% Economic Expansion in 2013
• Inflation Update January 2014: Analysis of Indonesia's 1.07% of Inflation