07 Sep 2021 | News & Feature

FX Reserves: The IMF’s largesse

  • 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.