Indonesia's forex reserve surges to near record after global bond issuance

Source: Xinhua| 2020-02-07 16:25:56|Editor: xuxin
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JAKARTA, Feb. 7 (Xinhua) -- Indonesia's foreign exchange reserve (forex) drifted up significantly to near a record following the sale of global bonds last month, giving the lender more firepower to deal with market volatility.

The Indonesian central bank, Bank Indonesia, on Friday announced its forex reserve jumped to 131.7 billion U.S. dollars in January from 129.2 billion U.S. dollars in December last year.

"The hike of the foreign exchange reserve in January 2020 was resulted from the issuance of global bonds, earning from oil and gas revenues, and other foreign exchange revenues," spokesman for the Central Bank Onny Widjanarko said.

The near-record forex reserve is sufficient to support 7.8 months of imports, and 7.5 months of imports and payment of the government short-term debts, the spokesman noted.

The figure came higher than the international threshold of 3 months of imports, he said in a statement.

Bank Indonesia has vowed to boost interventions in the foreign exchange and the bond markets from the risks of global economic uncertainty in a bid to maintain the stability of rupiah and the country's bonds.

The government's sold global bonds were totally valued at three billion U.S. dollars in January to help plug deficit of development budget for this year, according to the Finance Ministry.