Central Bank Predicts BOP Surplus this Year
(1)Bank Indonesia (BI) predicts the
country’s balance of payments (BOP) will swing from negative to positive this
year, (2)supported
by a rebound in exports and an influx of foreign inflows.
(3)Indonesia’s BOP regained surplus
in the fourth quarter of 2013 after three consecutive quarters of
deficit, (4)with the trend
expected to repeat in the first quarter this year, says BI Deputy
Governor Perry Warjiyo.
Overall, (5)Indonesia booked a US$7.3
billion deficit in BOP throughout last year.
“Overall, (6)our balance of payments will record a bigger surplus this
quarter, compared to a quarter earlier,” (7)Perry told reporters at his office on Friday. “This
year’s BOP will also be in surplus.”
(8)BOP comprises current account, capital
account and records all international monetary transactions between a country
and the rest of the world, indicating an economy’s financial health.
(9)Perry noted Indonesia’s improved
BOP this year would be attributable to an export rebound, (10)which would improve the current
account, and
to the return of foreign inflows, which would boost the capital account.
(11)Improved economic fundamentals
have prompted financial services giants, from Canada-based Manulife to
US-based BlackRock, to boost their investment portfolio allocations in
Indonesia.
(12)South Korea-based Samsung Asset
Management has declared that it is “super-overweight” on Indonesian
equities, (13)the
company’s investment manager Alan Richardson told Bloomberg recently.
(14)Even US-based Morgan Stanley —
which labeled Indonesia last year an economy most fragile to outflows —
upgraded the country to “equalweight”, from “underweight” in January.
(15)The robust foreign inflows so
far have propelled the rupiah and the Jakarta Composite Index (JCI) to
become the best performers in Asia’s currency and equity markets this year.
According to Perry, foreign inflows entering
Indonesia amounted to Rp 55 trillion ($4.84 billion) in the first three months
this year.(16) That was higher compared to the
Rp 42 trillion that the country recorded throughout 2013.
(17)“Sentiment on Indonesian assets
has continued to improve,” stated Ho Woei Chen, an economist with United
Overseas Bank (UOB) in Singapore.
A key driver of the improvement, (18)Ho said, was the better current
account, the major worry among investors last year, (19)which had narrowed to 2 percent
of gross domestic product (GDP) in the fourth quarter last year, from a
record high of 4.4 percent in the second quarter of the same year.
The
current-account deficit in the first quarter this year “would stand roughly at
the same level”, compared to the previous quarter of 2 percent, (20)according to Perry, who also
predicted Indonesia would record a $760 million surplus in trade balance in
February.
Tenses :
1. Bank Indonesia (BI) …… will swing from
negative to positive this year
2. supported by a rebound
3. Indonesia’s BOP regained surplus in the
fourth quarter
4. with the trend expected to repeat in the
first quarter this year
5. Indonesia booked a US$7.3 billion deficit in
BOP throughout last year
6. our balance of payments will record a bigger
surplus this quarter
7. Perry told reporters at his office on Friday.
“This year’s BOP will also be in surplus
8. BOP comprises current account, capital
account and records all international monetary transactions between a country
and the rest of the world
9. Perry noted Indonesia’s improved BOP this
year would be attributable
10. which would improve the current account
11. Improved economic fundamentals have prompted
financial services giant
12. South Korea-based Samsung Asset Management
has declared
13. the company’s investment manager Alan
Richardson told Bloomberg recently
14. Even US-based Morgan Stanley — which labeled
Indonesia last year an economy most fragile to outflows
15. The robust foreign inflows so far have
propelled the rupiah
16. That was higher compared to the Rp 42
trillion that the country recorded throughout 2013.
17. “Sentiment on Indonesian assets has continued
to improve,”
18. Ho said, was the better current account, the
major worry among investors last year
19. which had narrowed to 2 percent of gross
domestic product (GDP) in the fourth quarter last year
20. according to Perry, who also predicted
Indonesia would record a $760 million surplus in trade balance in February.
