BI Promises Stabilization of Rupiah Exchange Rate Increasingly
By : Wiyanto Dan Aldo Bella Putra | Friday, June 29 2018 - 18:30 IWST
Rupiah (Foto/Rizki Meirino)
INDUSTRY.co.id - Bank Indonesia continues to be aware of the risks of global financial market uncertainty while maintaining exchange rate stabilization measures in line with its fundamental values, as well as maintaining market mechanisms and supported financial market development efforts.
Bank Indonesia (BI) Governor Perry Warjiyo said the rupiah exchange rate in June 2018 was under pressure especially since mid-month triggered by the strengthening of the US dollar that occurred on a global scale.
"The rupiah exchange rate was in an upward trend until mid-June 2018, even at Rp 3,853 per USD as of June 6, 2018 as a response to the pre-emptive, front-loading and ahead of the curve policies of Bank Indonesia at the end of May 2018, "he said in Jakarta, Friday (29/06/2018).
However, he said, the Fed's more aggressive FOMC policy changes in mid-June 2018, other central bank's policy responses, particularly the European Central Bank and China's central bank, and the increasing uncertainty of global financial markets, triggered almost all world currencies not the exception of Rupiah.
On June 28, 2018, the Rupiah was recorded at Rp1,390 per USD, weakening 3 44% (ptp) compared to the end of May 2018. While compared to the end of December 2017, the Rupiah weakened 5 72% (ytd), lower than the weakening of the currency money from other developing countries such as the Philippines, India, South Africa, Brazil and Turkey.