(Insider Stories) - Indonesia's central bank (CB) set  policies measure to boost dollar liquidity, said the governor. The monetary regulator also will ease restrictions on foreign exchange-buying for exporters and allow banks to hold more funds in vostro accounts to ensure sufficient dollar liquidity.

CB's Governor Agus Martowardojo said the central bank will also allow banks to use it as a counterparty in "swap and reswap" derivative transactions and  extended the time period for dollar term deposits to one day to 12 months, from seven to 14 months.

The policy measures are part of a fiscal package unveiled by President Susilo Bambang Yudhoyono's administration to revive confidence and consumer spending in Indonesia.

Indonesia’s rupiah and India’s rupee led a drop in Asian currencies this week as foreign funds pulled money from regional assets on speculation the U.S. will soon start tapering stimulus.

The rupee headed for its worst week since 1993 and the rupiah fell by the most since 2008 as minutes of the Federal Reserve’s July meeting released Aug. 21.

The Indonesian currency fell 4.2 percent this week to 10,840 per dollar, according to prices from local banks. The rupee weakened 4.3 percent, the biggest decline since September 2011, to 64.4525, the baht dropped 2.1 percent to 31.95 and the ringgit declined 0.9 percent to 3.3065.

The rupiah touched the lowest level since April 2009 today after Southeast Asia’s largest economy posted a record current-account deficit of $9.8 billion in the second quarter, the largest in data going back to 1989, the central bank said on Aug. 16. Inflation accelerated to a four-year high of 8.6 percent in July, official data show.