Indonesia FX Reserves Hit Nearly Two-Year Low on Rupiah Defense

Indonesia's foreign-exchange reserves fell for a third consecutive month in March to their lowest level in nearly two years, as the central bank stepped up market intervention to support the weakening rupiah. The reserve drawdown signals pressure on external buffers and heightens the risk of continued FX volatility and risk-off flows for Indonesian assets.

Analysis

Indonesia's foreign-exchange reserves fell for a third consecutive month in March to their lowest level in nearly two years, as the central bank stepped up market intervention to support the weakening rupiah. The reserve drawdown signals pressure on external buffers and heightens the risk of continued FX volatility and risk-off flows for Indonesian assets.