Indonesian central bank foreign exchange reserve increased in March amid a huge capital inflow and relatively stable rupiah.
The foreign exchange reserve rose to 121.8 billion U.S. dollars at the end of March compared with 119.9 billion U.S. dollars at the end of February, Tirta Sagara, spokesman of the lender said on Friday.
Capital inflows reached 79.1 trillion rupiah (some 5.929 billion U.S. dollars) this year, indicating confidence of foreign investors on Indonesia's economy amid global uncertainty, said Mirza Adityaswara, deputy governor of the bank.
"Indonesia remains a favorite place for foreign investors, rupiah volatility is under control and stock market is bullish," he said at the bank headquarters on Friday.
Besides, the revenues from issuance of global bonds, taxes and, oil and gas exports also rose in March, the spokesman said.
The natural-resources-rich country has witnessed rising shipment of products overseas in recent months amid increasing global oil prices and commodities, the major exported products of the country.
Rupiah has strengthened against the U.S. dollar this year, and its appreciation averages about 0.17 percent per month, according to the lender.
On Friday rupiah was traded at 13,341 against one U.S. dollar. The figure is sufficient to finance the country's importation and pay foreign debts by up to 8.9 months, exceeding three months threshold, according to Sagara.
The central bank has refrained from rising benchmark interest rate in recent months, despite recent rate hike conducted by the U.S. Federal Reserve and the hawkish prospect of further rise in coming months.
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