Indonesia's foreign exchange (forex) reserves rose to 110.5 billion USD by the end of July from 107.7 billion USD one month ago, according to the central bank of Indonesia (BI).

This was the highest level of forex reserves since December 2012, mainly thanks to an increase of foreign capital inflows, the issuance of Euro government bonds and higher earnings from oil and gas exports, the bank said.

The amount of foreign reserves at the end of July is sufficient to cover 6.2 months of imports and foreign-debt payments, above the international sufficiency standard of three months.

The increased reserves is hoped to help Indonesia strengthen its resilience to any external instability, especially fluctuations in financial markets.

The BI announced that the country’s currency account deficit stood at 2.12 percent of GDP in the first quarter of this year. The rate is forecast to exceed 4 percent in the second quarter.

The bank sets to curb the currency account deficit at below 3 percent of the GDP this year.-VNA