Thu, 29 Apr 1999

RI forex reserves slide to US$15.81

JAKARTA (JP): Net foreign exchange reserves declined to US$15.81 billion on April 23 from $15.86 billion on April 15, according to Bank Indonesia's latest weekly report.

The central bank said on Wednesday the slight fall in net foreign exchange reserves was due to the repayment of foreign loans.

Nevertheless, Bank Indonesia (BI) said the level was still above the International Monetary Fund's (IMF) adjusted net international reserves target of $14.3 billion.

Gross foreign exchange reserves declined to $25.80 billion on April 23 from $25.84 billion on April 15, the bank said.

BI reported that currency in reserve dropped by Rp 1 trillion to Rp 73.7 trillion.

The bank explained the fall, which was partly caused by a drop in the currency in circulation, reflected an improvement in public confidence in the country's battered banking industry.

BI said net domestic assets declined by Rp 728 billion to minus Rp 44.95 trillion.

The bank said the level of net domestic assets was still below the IMF adjusted target of minus Rp 32.19 trillion. (02)

Table A: Foreign reserves (in million dollars)

April 7 April 15 April 23

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Gross foreign assets 25,926.0 25,838.4 25,804.8

- Liquid reserves * - - -

- Other reserves ** - - -

Gross foreign liabilities 9,187.6 9,187.6 9,187.6

Net forward positions 0.0 0.0 0.0

Reserve against

foreign currency deposits 806.3 793.3 800.9

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Net international reserves 15,932.1 15,857.5 15,816.3

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

** Other gross foreign assets include export drafts, deposits i,n 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)

April 7 April 15 April 23

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Reserve money 77,116 74,708 73,671

- Currency in circulation 52,514 49,799 48,182

- Deposits at central bank 23,850 24,100 24,722

Net international reserves

(Rupiah at constant rate) 119,491 118,931 118,622

(in million dollars) 15,932.1 15,857.5 15,816.3

Net domestic assets -42,375 -44,223 -44,951

- Net claims on government 127,295 124,963 124,620

- Net claims on IBRA 8,026 8,245 14,219

- Liquidity credits 20,123 21,348 21,361

(of which to Bulog) 5,567 6,445 6,781

- Open market operations -70,600 -74,467 -75,994

Source: Bank Indonesia