BI ready to intervene rupiah’s volatility

JAKARTA. Bank Indonesia (BI) will continue monitoring the rupiah exchange rate and is always ready to intervene if necessary in order to maintain the volatility of the rupiah, BI Governor Agus Martowardojo stated.

"BI will always be in the market to maintain the rupiah's volatility and is ready to intervene anytime if needed, and we can notice it from a reduction in the foreign exchange reserves," he noted during a press conference here on Tuesday.

The central bank governor affirmed that the rupiah had depreciated by around 8.5 percent since the end of last year while it had depreciated below one percent on a month-to-date basis.

The average is relatively better as compared to other countries in the region, he remarked.

"On a month-to-date basis, the currencies of Singapore, Malaysia, and other ASEAN countries have depreciated more than one percent," he pointed out.

On a year-to-date basis, the rupiah has depreciated to a smaller extent compared to other currencies in the region and the world where the depreciation could reach above 10 or even 15 percent, he explained.

Agus stated that global sentiment was the main factor contributing to the rupiah's depreciation, especially influenced by the US Federal Reserve's statement regarding plans to increase its interest rate.

He noted that the market perception related to slow economic growth in the country was another factor affecting the rupiah's depreciation.

"In the second semester of 2015, we however will record an economic growth of above five percent. We believe this will be good," he added.