JAKARTA - Bank Indonesia (BI) noted that there were net outflows from the domestic financial market of US$400 million in the period January to March 15, 2021.
"Foreign capital inflows into domestic financial markets have been restrained in line with increasing uncertainty in global financial markets," said BI Governor Perry Warjiyo at a press conference at the BI Board of Governors' Meeting in Jakarta, as reported by Antara, Thursday, March 18.
However, despite the outflow of foreign capital, Perry said that the rupiah exchange rate was maintained so that it strengthened by 0.38 percent point-to-point and 0.01 percent on average compared to the level at the end of February 2022.
According to Perry, the development of the exchange rate was supported by the supply of domestic foreign currency and positive perceptions of the outlook for the domestic economy, amidst increasing uncertainty in global financial markets. With these developments, the rupiah as of March 16, 2022 recorded a depreciation of around 0.42 percent compared to the level at the end of 2021.
Despite the depreciation, the decline in Garuda's currency was relatively lower than the depreciation of the currencies of a number of other developing countries, such as Malaysia 0.76 percent, India 2.53 percent, and the Philippines 2.56 percent.
"In the future, the rupiah exchange rate is estimated to be maintained, supported by the condition of Indonesia's economic fundamentals which remain good," said Perry.
BI will continue to strengthen the rupiah exchange rate stabilization policy in accordance with the operation of market mechanisms and economic fundamentals, through measures to promote the effectiveness of monetary operations and the availability of liquidity in the market.
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