- Bank Indonesia’s FX reserves stood at USD 144.0 Bn in February 2024, declining by USD 1.1 Bn. The decline can be attributed to the maturing sovereign global bonds and FX intervention amid renewed pressures on the Rupiah.
- The post-Election bounce in the stock market proved short-lived, and was offset by outflows from the bond market due to growing uncertainty in Fed rate outlook as well as fiscal deficits both in the US and Indonesia.
- BI’s response to the situation is unlikely to be drastic, making it crucial that it now has ample FX reserves to ride the choppy market relatively smoothly.
