CONTACT

Foreign Currency Deposits Surge as Demand for US Dollars Increases

US dollar banknotes illustrating the rise of foreign currency deposits amid rupiah weakness

SHARE THIS POST:

OTHER POST:

Foreign Currency Deposits Surge

Foreign currency deposits in Indonesia grew strongly in May 2026 as businesses and individuals increased their US dollar holdings. Many market participants sought protection from ongoing rupiah weakness and global economic uncertainty.

According to Bank Indonesia, total banking deposits reached IDR 9,698.7 trillion in May, marking annual growth of 10.8%. Foreign currency deposits led the increase, expanding 17.8% year-on-year. In comparison, rupiah deposits grew at a more moderate pace.

Several factors supported this trend. First, many companies increased their US dollar reserves to manage import payments and foreign debt obligations. At the same time, exporters placed more export earnings in foreign currency accounts as commodity prices remained favorable.

Individual customers also contributed to the growth. Many depositors viewed foreign currency savings products as a way to preserve value while the rupiah remained under pressure. As a result, both foreign currency savings accounts and time deposits recorded strong growth during the period.

Despite the recent increase, analysts expect foreign currency deposit growth to slow later this year. Bank Indonesia continues to support rupiah stability through interest rate policy and other monetary instruments. In addition, a less aggressive policy stance from the Federal Reserve could reduce demand for US dollars.

Several major banks reported higher foreign currency deposits. However, rupiah deposits still account for the largest share of banking funds across the industry.

As exchange rate conditions continue to evolve, many individuals and businesses are reviewing how they manage their currency exposure. Understanding foreign currency trends can help customers make more informed decisions when saving, exchanging, or transferring funds internationally.

For customers who need to exchange foreign currencies, Cash X Change offers professional and reliable service, fast and secure transaction, and competitive exchange rates. Meanwhile, Ditransferin provides convenient international money transfer solutions through Western Union for personal and business transactions worldwide.