Indonesia: FX reserves shrank in April – UOB

UOB Group’s Enrico Tanuwidjaja and Junior Economist Agus Santoso review the latest release of FX reserves in Indonesia.

Key Takeaways

“Indonesia’s foreign exchange reserves eased USD1bn to USD144.2bn in Apr 2023.”

“The latest reserve level was equivalent to finance 6.4 months of imports or 6.3 months’ worth of imports and servicing the government’s external debt, well above the international adequacy standard of 3 months of imports.”

“Implementation of foreign currency monetary operation through export receivables’ placement in the onshore market (TD DHE) has succeeded in attracting USD451mn of foreign exchange in the first week of May.”