Thursday 19 March 2015

BANK INDONESIA PREVENTS THE RUPIAH FROM BEING TOO VOLATILE



The Composite Stock Price Index (IHSG) touched a new record, reaching 5,427, after the decline in Bank Indonesia benchmark (SBI) rate by 25 basis points from 7.75% to 7.5%. However, the increase is not balanced by strengthening of the rupiah, which is still sluggish in the range of IDR 12,813 per USD.

According to Bank Indonesia governor, Agus Martowardojo, weakening of the rupiah is mainly influenced by global economic conditions. According to him, the position of the rupiah currently is not alarming. ‘If there is a risk on, risk off was affected in general. We see that it is still within a reasonable limit. It is mainly due to external factors, “said Agus in Jakarta, on Monday (February 23).

Agus said that party will always monitor the condition of the money market to prevent the rupiah from being too volatile. “Bank Indonesia controls volatility do the Rupiah will always be smooth within a normal range,” he said. (E)

Business News - February 27, 2015

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