Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Current account deficit of Indonesia narrowed during the third quarter of this year, matching the lowest level seen since the second quarter of 2012. Further, the recovery in rupiah volatility has also grabbed a considerable amount of attention.
Current account (C/A) deficit narrowed to 1.8 percent of GDP in 3Q16. This matches the lowest amount of C/A deficit seen since 2Q12 (C/A deficit was also at 1.8 percent of GDP in 3Q15). The merchandise trade data is likely to continue recording positive monthly balances till the year-end (Oct trade data due on Tuesday), making it all but certain that C/A deficit will come in around 2 percent of GDP this year, DBS reported.
However, the 3Q16 balance of payments (BoP) data showed net foreign direct investment (FDI) surging to 2.1 percent of GDP in the period. This means that net FDI can finance the entire amount of C/A deficit, for the first time since 2011.
Back in mid-2013, Indonesia’s C/A deficit at 3.5 percent of GDP was unsustainable as only half of it was covered by net FDI. When the taper tantrums erupted then, Indonesia was among the worst hit economies.
