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FX.co ★ Research: Indonesia's Reserve Depletion Will Continue due to Weak Portfolio Flows

Research: Indonesia's Reserve Depletion Will Continue due to Weak Portfolio Flows

Quotes from Barclays Capital:

-Indonesia's external position has been a credit weakness. Foreign reserves fell to USD107bn at April 2013 from USD112bn at end-2012. We believe reserve depletion will continue due to weak portfolio flows, a persistent current account deficit and foreign currency intervention.

-As reserves near the USD100bn mark, we believe markets will become more nervous and focus on the absolute amounts potentially owed to foreigners - short-term external debt, and foreign holdings of local-currency bonds and equities.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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