Determinants of Indonesia’s Foreign Exchange Reserves Using the Monetary Approach to the Balance of Payments (MABP)

Prasetyo, Alvin Sugeng
Listiana, Yufita

EKONOMIS : Journal of Economics and Business
Vol 9, No 2 (2025): September

This study aims to analyze Indonesia's foreign exchange reserves using a monetary balance of payments approach. The data used are quarterly time series data for the period 2010.Q1 – 2024.Q4. The method used is FMOLS. The results show that real interest rates and domestic credit have a negative and significant effect on foreign exchange reserves. However, in contrast, economic growth and the real exchange rate have a positive and significant effect on Indonesia's foreign exchange reserves during the period 2010 – 2024.