REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) Governor Perry Warjiyo confirmed that the stability of the Rupiah exchange rate is maintained thanks to BI policy commitments. Through October 15, 2024, the rupiah weakened 2.82 percent from the previous month, mainly due to increased global uncertainty due to geopolitical tensions in the Middle East.
“When compared to the end of December 2023, the depreciation of the Rupiah is only 1.17 percent, better than other currencies such as the Philippine Peso, Taiwan Dollar, and Korean Won which depreciated by 4.25 percent, 4.58 percent, and 5.62 percent, respectively,” Perry told the RDG press conference at BI Complex on Wednesday (16/10/2024).
He continued, BI predicts the stability of the Rupiah exchange rate in the future will be supported by attractive yields, low inflation, and a positive growth outlook for Indonesia's economy. Perry also reiterated BI's commitment to maintaining economic stability will continue.
He further added that pro-market monetary instruments, namely Bank Indonesia Rupiah Securities (SRBI), Bank Indonesia Currency Securities (SVBI), and Sukuk Valas Bank Indonesia (SUVBI) will continue to be optimized to support strengthening the stability of the Rupiah exchange rate and achieving inflation targets. The policy is also aimed at accelerating the deepening of money markets and foreign exchange markets and encouraging the inflow of foreign capital into the country.
Until October 14, 2024, SRBI, SVBI, and SUVBI instrument positions were recorded at Rp 934.87 trillion, 3.38 billion US dollars, and 424 million US dollars, respectively. Issuance of SRBI has supported increased foreign portfolio inflows and strengthening of the Rupiah exchange rate. Non-resident holdings in SRBI totaled Rp 254.57 trillion, which is equivalent to 27.23 percent of total outstanding.
“We will strengthen the pro-market monetary operations strategy by optimizing SRBI, SVBI, and SUVBI instruments to attract foreign capital flows and support the strengthening of the Rupiah exchange rate,” he said.
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