Jakarta, hitclubapk3 Indonesia
—
Bank Indonesia
(BI) opens voice on the cause of the exchange rate
rupiah
weakened to the level of IDR 16,700 per
US dollars
the last few days.
BI Deputy Governor Destry Damayanti said the weakening of the rupiah was triggered by global uncertainty.
These conditions encourage investors to switch to safer assets, such as the US dollar.As a result, the US dollar index (DXY) tends to strengthen.
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“DXY continues to trend upwards, as well
yield
from the US
bonds
,
treasury
America’s is also still high
yield
so of course this is encouraging
risk off
on the market
emerging markets,
including in Indonesia,” said Destry in a virtual BI Board of Governors Meeting press conference, Wednesday (19/11).
Destry added that these conditions created foreign capital flows (
capital inflow
) to emerging markets, including Indonesia, is limited.As a result, the rupiah exchange rate and regional currencies are currently under pressure.
He said the weakening had occurred since October.However, exchange rate volatility continues to occur.
“For example, today, regional markets strengthened, including the rupiah strengthening today at 0.21 percent,” he said.
On the same occasion, BI Governor Perry Warjiyo said that his party was taking steps to stabilize the rupiah exchange rate through intervention in the spot market and local market.
nondeliverable forward
(NDF) or
domestic non-deliverable forward
(DNDF), as well as purchasing SBN in the secondary market.
The increase in foreign exchange conversion to rupiah by exporters in line with the implementation of strengthening the Foreign Exchange Proceeds from Natural Resources Exports (DHE SDA) policy as well as additional foreign exchange supplies from corporations also supports the control of the rupiah exchange rate.
“The rupiah exchange rate is predicted to be stable, supported by attractive yields, low inflation and the continued good prospects for Indonesia’s economic growth,” he said.
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(fby/dhf)
