Forex reserves inch down in September amid rupiah volatility
Indonesia’s foreign exchange reserves have declined slightly as Bank Indonesia (BI) battles fresh bouts of rupiah volatility.
Indonesia's foreign exchange reserves dipped slightly in September due to increased volatility in the rupiah currency, according to Bank Indonesia (BI). The country's forex reserves stood at $146.3 billion in September, a minor decrease from $146.5 billion in the previous month. Central bank spokesperson Ramdan Denny Prakoso attributed the decline to the bank's efforts to stabilize the rupiah amid "global financial market uncertainties that remain high."
The forex reserves, equivalent to 5.3 months of imports, are above the international adequacy standard of around 3 months. BI views this level as sufficient to support the resilience of the external sector and maintain macroeconomic and financial system stability. However, the reserves have remained stagnant since June, following a five-month decline in the first half of the year.
The first half of 2023 was challenging for the rupiah, which faced fiscal concerns due to a growing budget deficit from the previous year. The situation worsened when Thomas Djiwandono, nephew of President Prabowo Subianto, was appointed as BI deputy governor in early February, sparking questions about the central bank's independence. The most significant pressure came after the United States and Israel launched missile strikes on Iran on February 28.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
