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The level of reserves in foreign currencies that banks must park at BI would be cut by 400 basis points (bps) to 4%, a measure that would pump $3.2 billion into the banking system starting on March 16, Warjiyo said.
A similar requirement for rupiah savings would also be cut by 50 bps for banks that lend to exporters and importers starting on April 1 and be effective for nine months, he said.
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BI will also allow domestic NDF transactions to be based on sales of government bonds by foreign investors, so long as the proceeds are placed in a rupiah saving account, Warjiyo said, arguing that some foreign investors were looking to reinvest once market volatility subsided.
Last month, BI cut interest rates by 25 bps, its fifth rate since May, to mitigate the economic impact of the virus outbreak. It also trimmed its 2020 gross domestic product growth outlook slightly to a range of 5.0%-5.4% from 5.1%-5.5%.
The government also announced a nearly $750 million stimulus package to support domestic consumption and tourism.
BI will also bring forward about 10 conferences initially scheduled for the second half of the year to stimulate economic activity, Warjiyo said.
