BI Sees Rupiah Getting Stable, Inflation Benign in March

Bank Indonesia (BI) assesses that the Rupiah movement getting stable after plunged for several days and almost touched the lowest level in history - Photo by BI Office

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) assesses that the Rupiah movement getting stable after plunged for several days and almost touched the lowest level in history. Until 2.57 p.m eastern time, the local currency stayed at Rp16,450 against the US Dollar, near to same level in previous day.

“The Rupiah exchange rate is also quite stable with the entry of foreign exchange by exporters. We make sure BI will continue to exist in the market. We also intervene in the financial markets, DNDF and bond markets, by adding liquidity to the financial markets,” said the governor, Perry Warjiyo, in a video conference today (03/24).

So far, he continued, the central bank has bought government bond worth of Rp68 trillion (US$4.25 billion), from repo transactions Rp55 trillion, and Rp75 trillion from easing of reserves requirement.

He also note, foreign capital outflows with total amount Rp125.2 trillion (mostly in March Rp104 trillion), which is Rp116 trillion from bond market and Rp9.2 trillion from stocks market. 

But he assured, even the Bank has intervened the market with big funds, the amount of foreign exchange reserves is sufficient to stabilize the exchange rate movement. Warjiyo also rated, the global panic in the world now is slowing down, but BI will continue to monitor it.

The food prices also stable in the middle of pandemic. Based on BI monitor, until third week of March, monhtly inflation was kept low at 0.11 percent compared to prior month and in annual basis at 2.98 percent.

COVID-19 spread rapidly throughout and become a global problem. Last night, the finance minister and central bank governors of Group 20 (G20) has talked joined with international institutions, such as International Monetary Funds (IMF), World Bank, OECD and United Nations.

At the conference, said Warjiyo, all countries are stepping up the pandemic prevention measures through joint actions. The policymakers also agreed to provides more fiscal and monetary stimulus in their countries to help the public and curb the capital market panic by adding liquidity to financial markets and banks.

The Group are scheduled to meet again on Sunday to discusses a further joint collective action for the global economy.

US$1: Rp16,000

Written by Staff Editor, Email: theinsiderstories@gmail.com