Indonesia’s foreign exchange reserves shrink

15:52 | 15/07/2015 Global Economy

Indonesia’s foreign exchange reserves shrank 2.8 billion USD to 108 billion USD at the end of June 2015 from a month earlier, said Executive Director of the Bank Indonesia (BI) Tirta Segara.

Indonesia’s foreign exchange reserves shrink

The headquarter of the Bank Indonesia (Photo: cekindo.com)

The Antara News quoted him as saying that the decline was the result of foreign debt repayment by the Government and the use of foreign exchanges to prop up the rupiah.

He noted foreign exchanges had been used to maintain rupiah stability at its fundamental value to support macro-economic stability.

The remaining foreign exchange reserves are enough to cover seven months of the country’s imports or 6.8 months of import and foreign debt servicing, he said, adding that it is still well above the international adequacy standard of around three months of imports./.

Source: VNA

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