August Foreign Exchange Reserves USD 144.8 B, Faisal Basri: Highest in History

TEMPO.CO, Jakarta – Reserve position foreign exchange Indonesia at the end of August 2021 was recorded at US$ 144.8 billion, an increase compared to the position at the end of July 2021 of US$ 137.3 billion.

“The highest foreign exchange reserves in history will be at the end of August 2021. The rupiah exchange rate is close to Rp. 14,000 per US dollar,” said a senior economist at the University of Indonesia. Faisal Basri in a tease on @FaisalBasri’s account, Tuesday, September 7, 2021

Quoted from a press statement by Bank Indonesia, the position of Indonesia’s foreign exchange reserves is equivalent to financing 9.1 months of imports or 8.7 months of imports and servicing government external debt, and is above the international adequacy standard of around 3 months of imports.

Bank Indonesia views the foreign exchange reserves as capable of supporting external sector resilience and maintaining macroeconomic and financial system stability.

The increase in the position of foreign exchange reserves in August 2021, said BI, mainly due to the additional allocation Special Drawing Rights (SDR) of 4.46 billion SDR or equivalent to US$ 6.31 billion received by Indonesia from the IMF.

In 2021, IMF increase the allocation of SDR and distribute it to all member countries, including Indonesia, proportionally according to their respective quotas.

This is intended to support global economic resilience and stability in the face of the impact of the Covid-19 pandemic, build the confidence of economic players, and also to strengthen global foreign exchange reserves. The SDR allocation is distributed to IMF member countries at no cost.

Going forward, Bank Indonesia views foreign exchange reserves as adequate, supported by stable economic prospects and maintained, in line with various policy responses to promote economic recovery.

Read: Balance of Payments Deficit USD 400 Million Quarter II, Bank Indonesia: Remains Low

CAESAR AKBAR

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