BI Claims Rupiah Exchange Rate Is Better Than The Philippines, South Korea And Thailand

Rupiah (Photo: Antara)

JAKARTA - Bank Indonesia (BI) revealed that the Rupiah exchange rate was strengthened by the monetary policy mix taken in mitigating the impact of the global uncertainty.

BI Governor Perry Warjiyo said the Rupiah exchange rate until May 21, 2024, rose 1.66 percent (point to point) again, after April 2024 weakened 2.49 percent (point to point).

"The strengthening of the Rupiah exchange rate was driven by the positive impact of the response to the Bank Indonesia monetary policy mix in April 2024," he said at a press conference, Wednesday, May 22.

Perry conveyed that this policy response encourages foreign capital inflows, especially to SBN and SRBI, amounting to 4.2 billion US dollars until May 20, 2024.

With this development, the Rupiah exchange rate weakened 3.74 percent from the level at the end of December 2023, better than the weakening of the Philippine Peso, Won Korea, and Baht Thailand by 4.91 percent, 5.52 percent, and 5.99 percent, respectively.

In the future, Perry said that the Rupiah exchange rate is predicted to be stable with a tendency to strengthen driven by attractive returns in line with the increase in BI-Rate, declining risk premiums, better economic prospects, and Bank Indonesia's commitment to continue to stabilize the Rupiah exchange rate.

In addition, Perry said that Bank Indonesia also continues to optimize all available monetary instruments to stabilize the Rupiah exchange rate, including through strengthening the pro-market monetary operation strategy by optimizing SRBI, SVBI, and SUVBI instruments.

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