FOREX RESERVES DROP TO US$101.7 BILLION IN SEPTEMBER

Jakarta, 23 Dhulhijjah 1436/8 October 2015 (MINA) – Bank Indonesia (BI), the central bank, announced on Wednesday (07/10) that the country’s foreign exchange reserves had fallen to USD $101.7 billion at the end of September 2015 from US$105.3 billion in the preceding month.

It is the largest drop in seven months, Mi’raj Islamic News Agency (MINA) quoted BI as saying in a statement.

The reserves dropped due to the servicing of government foreign debt and rupiah exchange rate stabilization efforts.

Until Friday the past week, the rupiah was plagued by severe pressure caused by looming higher US interest rates.

However, after the release of weak US economic data last Friday, sentiments changed completely and emerging markets saw massive capital inflows on the back of an expected US interest rate hike delay.

As a result Indonesia’s rupiah and Jakarta Composite Index strengthened significantly.

The foreign exchange reserves are adequate to cover seven months of imports or 6.8 months of imports and government foreign debt servicing, well above the international standards of reserve adequacy at three months of imports. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)