BI: Rupiah exchange rate relatively under control amid pressure in August-September
JAKARTA - In the Bank Indonesia Board of Governors Meeting (RDG) on September 16-17 2020, BI Governor Perry Warjiyo stated that the Rupiah exchange rate was relatively under control amid high pressure in August and September 2020.
As of September 16, 2020, the Rupiah exchange rate depreciated 1.58% on a point to point basis compared to the end of July 2020, or depreciated 6.42% from the end of December 2019. The depreciation of the Rupiah in August-September 2020 was partly influenced by high financial market uncertainty, both due to global factors and a number of domestic risks.
Going forward, Bank Indonesia views the Rupiah exchange rate as having the potential to strengthen again in line with its fundamentally undervalued level, supported by low and controlled inflation, low current account deficit, high attractiveness of domestic financial assets and a declining risk premium for Indonesia.
Bank Indonesia continues to strengthen its rupiah exchange rate stabilization policy in accordance with its fundamentals and market mechanisms, through effective monetary operations and availability of liquidity in the market. (LM)