- BI’s FX reserves position fell again to USD 146.2 Bn in April 2026. Foreign debt payments, lower gold prices, seasonal outflows, and aggressive currency market interventions explain the decline.
- BI and the government outlined 7-pronged strategies to rein in outflows, yet the expectedly deeper current account deficit amid rising oil prices and expansive fiscal posture may continue to undermine the Rupiah’s fundamentals.
- Possible inflationary shocks may force BI to open the door for rate hikes, as supressed real interest rate may exacerbate outflows and pile the pressure on the Rupiah.
