Rupiah Remains Stable in Q1, Says BI

Indonesia’s Central Bank Governor Agus Martowardojo holds new Indonesian Rupiah banknotes at an official ceremony in Jakarta, December 19, 2016 — ANTARA photo.

Jakarta, 1 Sya;ban1438/2 April 2017 (MINA) – The Indonesian rupiah strengthened 1.09 points against the US dollar in the first quarter of 2017, Antara quoted Bank Indonesia (BI) Governor Agus Martowardojo as saying.

“The rupiah moved in a stable way and tended to strengthen. The rupiah appreciated 1.09 percent in the first quarter of 2017 (year-to-date) from Rp13,473 to Rp13,326,” he stated at a press conference to announce the outcome of the Financial System Stability Committee (KSSK) meeting here on Thursday.

The rupiahs appreciation was fueled by the market players positive perception, improving prospect of the global economy, optimism about the domestic economy, and the inflow of foreign capital, he noted.

“Pressure on the rupiahs exchange rate remained under control due to the declining global risk as a result of the limited impact of the Fed Fund Rate hike in March 2017 and the improving global commodity prices since the fourth quarter of 2016,” he remarked.

On the domestic side, the rupiahs appreciation was fueled by positive sentiment toward and optimism about the prospect of the country’s economic stability, including foreign exchange reserve hike, he revealed.

“With the pressure on the rupiahs exchange rate remaining under control, pressure on the financial market could be controlled accordingly at normal zone as reflected by the stable performance of the domestic financial market,” he asserted.

The rupiahs current exchange rate is good, reflecting fundamental condition and showing no sign of volatility, such as the case during the period of “Taper Tantrum” in 2013 due to uncertainty about the Federal Reserves policy, he pointed out.

In response to the rupiahs stable exchange rate, BI did not adopt a very tight policy to intervene in the money market. (T?RS5/RS1)

Mi’raj Islamic News Agency (MINA)