Wed, 15 Jul 1998

Reserve money up by Rp 354b: Bank Indonesia

JAKARTA (JP): Reserve money increased by Rp 354 billion (US$23.6 million) in the week to July 10, a smaller rise than in the previous week, Bank Indonesia said yesterday.

The central bank said in a statement that the smaller rise was a result of its market operation which has absorbed Rp 2.67 trillion from the money in circulation.

BI remains committed to tight monetary policy to stave off inflation and stabilize the rupiah, the statement added.

BI also said that its net domestic assets expanded to minus Rp 71.56 trillion in the week to July 10, up from minus Rp 74.82 trillion on July 3.

The rise was due to the increase in BI's claims on domestic banks including an advance payment facility granted to pay trade finance arrears as part of the Frankfurt debt restructuring agreement, BI said.

BI's net claims on the government contracted by Rp 6.93 trillion to minus Rp 58.76 trillion as of July 10 as a result of the realization of loans from the International Bank for Reconstruction & Development (IBRD) and tax and oil revenue, the central bank said.

Gross foreign exchange reserves during the week totaled US$18.77 billion, a slight decrease from the July 3 level which was mainly due to provisions made to pay back private bank trade finance arrears, it said, adding that this had resulted in net foreign exchange reserves of $14.40 billion. (rei)

Table A: Foreign Reserves (in million dollars)

June 26 July 3 July 10

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Gross foreign assets 18,995.6 19,129.0 18,774.8

- Liquid reserves * 12,226.8 12,336.8 -

- Other reserves ** 6,768.8 6,792.2 -

Gross foreign liabilities 3,921.2 3,921.2 3,921.2

Net forward positions -34.0 -34.0 -30.0

Reserve against

foreign currency deposits 430.9 431.4 419.4

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Net international reserves 14,609.5 14,742.4 14,404.2

* 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)

June 26 July 3 July 10

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Reserve money 67,689 71,541 71,895

- Currency in circulation 50,454 53,712 53,220

- Deposits at central bank 16,392 16,940 17,725

Net international reserves

(Rupiah at constant rate) 102,267 147,424 144,042

(in million dollars) 14,609.5 14,742.4 14,404.2

Net domestic assets -33,034 -74,816 -71,557

- Net claims on government -46,285 -51,832 -58,758

- Net claims on IBRA 132,339 136,187 137,242

- Liquidity credits 19,511 19,309 19,309

(of which to Bulog) 7,613 7,615 7,596

- Open market operations -72,568 -72,596 -75,263

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Source: Bank Indonesia