DETERMINANTS OF FOREIGN EXCHANGE RESERVES IN INDONESIA; INFLATION, FOREIGN DEBT, OR EXPORT?

Rimelda Rona Sari, Putri Suryani Sebayang

Abstract


Foreign exchange reserves arean assets of the central bank. It has saved by reserve currency like dollars, euros, yen and used for beganing international trade and finance the Indonesian economy. It saved in a Balance Payment (BOP). This study aims to determine how the influence of macroeconomic variables (inflation, exchange rate, exports, imports) on foreign exchange reserves in Indonesia. The data used in this study during the period 2001-2015 from the Central Statistics Agency (BPS), and Bank Indonesia (BI). This research used Ordinary Least Square (OLS). Based on the analysis, the researchers found simultaneously that inflation, foreign debt, exports and have significant effect to the foreign exchange reserves in Indonesia. Partially inflation has no effect;foreign debt has significant effect, and export have significant effect to foreign exchange reserves in Indonesia.

 

Keyword: Inflation, Foreign Debt, Exports, Foreign exchange reserves


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