Economist at UOB Group Enrico Tanuwidjaja reviewed the recent release of FX reserves figures in Indonesia. Key Quotes “Indonesia foreign exchange reserves dropped by USD1.3bn to USD130.4bn as end-February 2020. The latest reserve level was equivalent to 7.7 months of import financing or 7.4 months of imports, and payments of government external debt, which is well above the international adequacy standard of around 3 months of imports. Despite being lower than January’s 2020 position, Bank Indonesia (BI) considers that the official reserve assets position remains able to support the external sector resilience and maintain macroeconomic and financial system stability.” “BI reiterated that the decline in February’s foreign exchange reserves was attributable to the government’s external debt payments, amongst others. In addition, we view that the drop was also influenced by the foreign outflows in government bonds and stocks during the month linked to the COVID-19 outbreak. On top of that, foreign exchange earnings from exports seemed to be slower due to the weaker demand and lower price of crude palm oil (CPO – Indonesia’s main commodity) from China; as CPO price fell by 10% throughout February.” “We might see a further decline in FX reserves (yet measured) on the back of the ongoing uncertainty from the COVID-19 outbreak, which may result in slower foreign exchange earnings and capital outflow. Nevertheless, Indonesia’s stable and low inflation will help the central bank in maintaining the exchange rate stability.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP Futures: Extra gains look unconvincing FX Street 3 years Economist at UOB Group Enrico Tanuwidjaja reviewed the recent release of FX reserves figures in Indonesia. Key Quotes “Indonesia foreign exchange reserves dropped by USD1.3bn to USD130.4bn as end-February 2020. The latest reserve level was equivalent to 7.7 months of import financing or 7.4 months of imports, and payments of government external debt, which is well above the international adequacy standard of around 3 months of imports. Despite being lower than January’s 2020 position, Bank Indonesia (BI) considers that the official reserve assets position remains able to support the external sector resilience and maintain macroeconomic and financial system stability.” “BI… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.