- BI’s FX reserves declined by USD 1.6 Bn to USD 145.1 Bn in January 2024, driven by maturing global bonds, although the impact was cushioned by substantial foreign capital inflows during the same period.
- While the Indonesian financial market continues to benefit from foreign capital inflows, the Rupiah trended downward throughout January 2024 as BI appeared reluctant to utilise the ample FX reserves to intervene in the money market.
- BI may be seeking to conserve its FX reserves, anticipating that intensifying pressure on the Rupiah in the upcoming months will eventually prompt them to launch more stringent market interventions.
