Highlights of August’s Forex Reserves
The Indonesia’s forex reserves of August amounted to USD 117.9 billion. The figures were lower than the July’s forex reserves of USD118.3 billion and the lowest figures since January 2017. The decline in the August’s forex reserves amounted only USD400 million lower than the decline of USD1.1 billion to USD3.9 billion per month occurred from February to July.
Decline in Forex Reserves Aligning with Rupiah Depreciation
Rupiah stability and forex reserves position have an inextricable link. The trend of rupiah depreciation to hit 8.5% from the early of 2018 to the end of August caused the forex reserves to slide down by USD12.3 billion. The decline was in line with Bank Indonesia (BI) main duty of maintaining the rupiah stability through varied intervention in forex and government bond (SBN) markets.
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