Indonesia: FX reserves extended the downside in April – UOB

Economist at UOB Group Enrico Tanuwidjaja reviews the latest FX reserves figures in Indonesia.

Key Takeaways

“Indonesia’s foreign exchange reserves decreased to USD135.7bn in April 2022; down by USD3.4bn from the previous month. Approximately a cumulative decline of USD10bn was recorded since its peak in Sep last year.”

“Nevertheless, the current level of reserves remained well above the international adequacy standard of 3 months of imports. The latest reserve level was equivalent to finance 6.9 months of import or 6.7 months of imports and servicing the government’s external debt.”

“Bank Indonesia views that the official reserve assets will remain adequate, along with several accommodative policies to support long-term economic recovery.”