How do Exports and Imports Distress Foreign Exchange Reserves in Indonesia? A Vector Auto-Regression Approach

DOI

10.2991/aebmr.k.200127.043How to use a DOI?

Keywords

FX reserves, export, import

Abstract

IMF conveyed that Indonesia’s foreign exchange (FX) reserves grasped 123.283 billion US $ in 2018 and ranked 21st in the world (China was the highest with 3.103 trillion US $ and Somalia was the lowest with 30 million US $). FX reserves are imperative indicators in international trade that form the fundamental strength of a country’s economy. The advance of FX reserves is influenced by numerous factors, including export and import deeds. Recognizing the effect of exports and imports on the position of Indonesia’s FX reserves for the last 25 years (period 1991- 2015), this study customs a quantitative approach with the Vector Auto-Regression. Indonesia’s FX reserves were positively influenced by FX reserves one year ago, negatively by exports one year ago, positively by imports one year ago, positively by exports two years ago, and negatively by imports two years ago. According to the theory, exports and imports can affect Indonesia’s FX reserves but only perceived in the subsequent two years.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - S. Hariadi
AU  - A.Z. Tayibnapis
AU  - N. Irawati
PY  - 2020
DA  - 2020/01/31
TI  - How do Exports and Imports Distress Foreign Exchange Reserves in Indonesia? A Vector Auto-Regression Approach
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 209
EP  - 213
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.043
DO  - 10.2991/aebmr.k.200127.043
ID  - Hariadi2020
ER  -