Fri, 04 Sep 1998

Net international reserves falls to US$ 13.51 billion

JAKARTA (JP): Bank Indonesia's (BI) net international reserves declined by US$190.7 million to $13.51 billion in the week ending Aug. 31 from the previous week's level of $13.70 billion.

The central bank said Wednesday that the level was still above the adjusted target of $12.1 billion set by the International Monetary Fund (IMF).

Bank Indonesia attributed the decline in the net international reserves to the absorption of money in circulation and debt service payments on the foreign debts.

The central bank said its net domestic assets were still below the Rp 65.22 trillion indicative target set by the IMF although it had increased by Rp 2.07 trillion to minus Rp 64.13 trillion.

The increase was due to the rise in government expenditures by Rp 2.96 trillion and debt service payment.

BI said net claims on the Indonesian Bank Restructuring Agency (IBRA) rose to Rp 141.52 trillion in the week ending Aug. 31 from the previous week's level of Rp 140.80 trillion. (aly)

Table A: Foreign Reserves (in million dollars)

Aug. 14 Aug. 21 Aug. 31

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Gross foreign assets 19,260.7 19,072.9 19,914.1

- Liquid reserves * - - -

- Other reserves ** - - -

Gross foreign liabilities 4,896.4 4,896.4 5,868.5

Net forward positions 0.0 0.0 0.0

Reserve against

foreign currency deposits 456.0 468.1 527.9

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Net international reserves 13,908.3 13,708.4 13,517.7

* Liquid gross foreign assets include gold, foreign securities, offshore deposits and special drawing rights.

** Other gross foreign assets include export drafts, deposits in the branches of domestic banks in offshore and deposits parked at foreign banks to guarantee letter of credits.

Table B: Monetary Indicators (in billion rupiah)

Aug. 14 Aug. 21 Aug. 31

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Reserve money 70,976 69,023 68,588

- Currency in circulation 51,418 50,915 51,570

- Deposits at central bank 18,573 17,103 16,531

Net international reserves

(Rupiah at constant rate) 139,083 137,084 135,177

(in million dollars) 13,908 13,708 13,517

Net domestic assets -67,776 -66,226 -64,139

- Net claims on government -56,223 -52,275 -49,309

- Net claims on IBRA 135,581 140,807 141,523

- Liquidity credits 17,624 18,278 18,088

(of which to Bulog) 7,657 8,221 8,131

- Open market operations -66,854 -67,647 68,403

Source: Bank Indonesia