JAKARTA - Bank Indonesia (BI) has recorded the volume of hedging transactions of the Domestic Non-Deliverable Forward (DNDF) as reaching US$ 115 million.
BI Governor Perry Warjiyo said DNDF transactions have shown good progress so far. "The supply and demand are quite developed so that this adds to the depth of the domestic forex market," Mr Warjiyo said as quoted by Kontan.co.id, Friday (9/11).
According to Mr Warjiyo , the DNDF policy is one of the domestic factors that has encouraged the strengthening of the rupiah exchange rate against the US dollar. Various policies implemented by BI and the government have given confidence to the market.
In addition to the DNDF policy, other factors that influence the strengthening of the rupiah are economic developments that are above expectations and maintained inflation. The prevalence of trade tensions between the United States and China is also considered an external factor that has pushed the rupiah to strengthen. (MS)