- BI’s FX reserves reached an all-time high of USD 144.8 Bn, thanks largely to the IMF’s SDR allocation.
- Aside from the IMF’s largesse, the capital account also performed strongly in August and early September, due to Indonesia’s recovery from its recent Delta-driven surge.
- Meanwhile, the Delta variant appears to be greatly disrupting the global recovery, triggering a bull market predicated on the Fed delaying its taper.
- As an alternative source of liquidity, the allocated SDR helps increase BI’s policy independence vis-à-vis the Fed, thereby allowing it to better coordinate a gradual exit from stimulus alongside the government.
