Jakarta (Indonesia Window) – Bank Indonesia (BI) has noted that the position of the country's foreign exchange reserves at the end of May 2022 remained high at 135.6 billion U.S. dollars, relatively stable compared to the position at the end of April 2022 of 135.7 billion dollars.

The development of the foreign exchange reserve position during the month was influenced, among other things, by foreign exchange income from oil and gas, taxes and services, as well as the payment of the government's foreign debt, Head of BI’s Communications Department, Erwin Haryono, said in a statement on Wednesday.

The foreign exchange reserve position is equivalent to financing 6.8 months of imports or 6.6 months of imports and servicing the government's foreign debt, and is above the international adequacy standard of around three months of imports, he noted.

According to Erwin, Bank Indonesia views the foreign exchange reserves as capable of supporting external sector resilience and maintaining the stability of the macro economy and the financial system.

The central bank considers that the foreign exchange reserves would remain adequate in the future, supported by the stability and the prospect of the maintained economy, along with various policy responses to promote economic recovery.

Reporting by Indonesia Window