BI Reveals Lower Rupiah Than Japan And Korea

Illustration (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) expresses that Bank Indonesia's exchange rate policy continues to be directed to maintain Rupiah's stability from the impact of the widespread strengthening of the US dollar.

BI Governor Perry Warjiyo said the US dollar exchange rate index against the main currency (DXY) rose sharply to the highest level of 106.25 on April 16, 2024 or experienced an appreciation of 4.86 percent compared to the level at the end of 2023.

"This development puts pressure on depreciation on almost all currencies in the world, including the Rupiah exchange rate," he explained at the RDG press conference, Wednesday, April 24, 2024.

Perry said that the movement of Japanese Yen and New Zealand Dollar weakened 8.91 percent and 6.12 percent (ytd), while regional currencies, such as Baht Thailand and Won Korea, fell 7.88 percent and 6.55 percent (ytd), respectively.

Meanwhile, the weakening of the Rupiah until April 23, 2024 was recorded to be lower, namely 5.07 percent (ytd).

Perry said that Bank Indonesia continues to strengthen the policy of stabilizing the Rupiah exchange rate by optimizing all available monetary instruments, either through intervention in the foreign exchange market in a spot and DNDF, purchasing SBN from the secondary market if needed, adequate liquidity management, and other necessary steps.

The pro-market monetary operation strategy through SRBI, SVBI, and SUVBI instruments continues to be optimized to attract the entry of foreign portfolios from abroad.

"Bank Indonesia also continues to strengthen coordination with the Government, banking, and the business world to support the implementation of instruments for the placement of the Natural Resources Export Result Foreign Exchange (DHE SDA) in line with PP Number 36 of 2023," he explained.