Bank Indonesia Committed to Strengthening Efforts to Stabilise Rupiah

BANK INDONESIA / BI - JAKARTA. Indonesia's central bank said in a statement on Wednesday that its efforts to stabilise the rupiah will be strengthened in order to achieve inflation targets and encourage economic activities.

Here are some more details from the statement from Bank Indonesia's head of monetary management, Erwin Gunawan Hutapea:

 

BI does not only rely on interest rates to support the rupiah, and uses a policy mix that includes other instruments such as intervention in the spot FX market and both onshore and offshore non-deliverable forwards.

 

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BI is also committed to efforts to maintain adequate liquidity in the money market and banking system.

 

Issuance of BI rupiah-denominated securities, known as SRBI, will be aligned with liquidity management needs and will support foreign capital inflows to contribute to rupiah stability.

 

BI will ensure an even distribution of liquidity in the financial sector.

 

The statement comes after the rupiah has weakened past 18,000 per dollar this week after the sudden resignation of BI Governor Perry Warjiyo renewed investor questions about the central bank's independence