JAKARTA - The Governor of Bank Indonesia (BI) Agus Martowardojo revealed, it has intervened in both the foreign exchange market (foreign exchange) and state securities (SBN). This is to keep the rupiah exchange rate against the US dollar (USD) so as not to decline too deep.
According to him, Garuda's non-counterfeit currency exchange rate faced USD due to the US yeild treasury bills which continued to increase to almost touch the psychological level of 3.0%. And again the strengthening speculation of Fed Fund Rate increase (FFR) more than three times this year.
"To maintain the stability of the rupiah exchange rate in accordance with its fundamentals, Bank Indonesia has intervened in both the forex market and the SBN market in considerable quantities," he said in an official statement received by SINDOnews in Jakarta on Tuesday (24/4/2018).
With these efforts, said the former Minister of Finance, IDR which on Friday had depreciated by -0.70%, on Monday it only weakened -0.12%. According to him, this weakening is lower than the depreciation that occurs in other emerging markets and Asian currencies, such as PHP -0.32%, India INR -0.56%, Thai THB -0.57%, MXN -0, 89%, and South Africa ZAR -1.06%.
The same picture is also evident in longer time periods. With support from stabilization efforts by BI, since the beginning of April (month to date / mtd), IDR has weakened by -0.91%, lower than the weakening of other emerging market currencies such as THB -1.04%, INR -1, 96%, MXN -2,76%, ZAR -3,30%.
Similarly, since the beginning of the year 2018 (year to date / ytd) IDR weakened -2.35%, also smaller than the weakening currency of some other emerging market countries such as BRL -3.06%, INR -3.92%, PHP -4.46%, and TRY -7.17%.
He stressed that his side will continue to monitor and be alert to the risk of continuing weakening trend in the rupiah exchange rate, both triggered by the global turmoil on the continuing foreign outflows of the Indonesian government securities market and shares. The turmoil, among others, the impact of rising US interest rates, US-China trade war, rising oil prices, and escalation of geopolitical tensions.
"And that comes from the increase in demand for foreign exchange by domestic corporations related to the need for import payments, EDs and dividends that usually tend to increase in the second quarter, so BI will remain in the market to maintain rupiah stability according to its fundamentals," he said.
I can only hope for the best of Indonesian people. Just like Philippines, we as normal citizen suffers. love and upvoted you ❤️ @elvielins
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yaa thanks you soo much.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit