JAKARTA Bank Indonesia (BI) stated that the strong US dollar and the high uncertainty of global financial markets put pressure on the weakening of the world's exchange rate, including the rupiah exchange rate.
BI Governor Perry Warjiyo said that the US dollar exchange rate index against the main currency (DXY) was recorded at 106.28 on November 16, 2022.
"This figure has strengthened by 11.09 percent year to date (ytd) during 2022," he said after holding a Board of Governors' Meeting (RDG), quoted on Sunday, November 20.
According to Perry, with stabilization steps taken by the central bank, the rupiah exchange rate until November 16, 2022 was depreciated 8.65 percent ytd compared to the level at the end of 2021.
"The depreciation of the rupiah exchange rate is relatively better than the depreciation of a number of other countries in the region, such as South Korea 10.30 percent and the Philippines 11.10 percent," he said.
Perry menambahkan, sangat kuatnya dolar AS didorong oleh pengetatan kebijakan moneter yang agresif di AS.
"This condition is also driven by capital withdrawals from various countries (capital outflows) to the US, amid weakening the economy and high inflation in Europe," said Perry.
At the same time, he continued, the high uncertainty in the global financial market continues. Due to this situation, it is certain that Bank Indonesia's monetary authority will continue to strengthen the policy of stabilizing the rupiah exchange rate in accordance with the market mechanism.
"We will also maintain the fundamental value of the rupiah to support efforts to control inflation and macroeconomic stability," he said.
For information, in the middle of this week, the central bank has determined to raise the benchmark interest rate by 50 basis points (bps) to 5.25 percent from the previous 4.75 percent.
This step was taken to control domestic inflation and to keep the interest rate in Indonesia competitive as well as a strategy in maintaining the rupiah exchange rate.
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