JAKARTA (TheInsiderStories) – Bank Indonesia (BI) is optimistic that the Rupiah could be stronger than the previous year. Although the local currency fell 0.21 percent today (03/04) to 14,140 against the US dollar compared to last weekend, said the Governor Perry Warjiyo. He rated, the Rupiah position still undervalued.
“Last year the Rupiah has been continuing to strengthen. It is now stable at around 14,000 per US dollar. In the future, the exchange rate forecast will remain stable,” he said at UBS Conference in Jakarta.
Warjiyo revealed, there were four factors that made the Rupiah stable and could be stronger in the future. First, the flow of foreign capital that continues to enter and could finance the current account deficit.
Second, the United States’ Federal Fund Rate is projected to only be two percent. Third, Indonesia’ economic fundamentals are getting better. And fourth, the market mechanism is growing.
Even so, with a lot of uncertainty in the global market, BI will develop five strategies such as monetary policy, macro-prudential policies, payment systems, Islamic financial and financial market controls, he added.
Warjiyo believed, the strengthening of US dollar will certainly suppress other currencies, including the Rupiah. But, the movement of the Rupiah is currently more stable, he stated, supported by four main factors.
The first factor has supporting the strengthening of the Rupiah are the investor confidence. This was evident from the continued flow of foreign capital, he adds.
Written by Staff Editor, Email: email@example.com