Bank Indonesia prepares measures to save rupiah
Bank Indonesia deputy governor Dody Budi Waluyo said the central bank was preparing measures to provide a boost to the rupiah, which depreciated to Rp 14,600 per United States dollar on Monday.
"We will continue the measures that we have been implementing," Dody said as reported by kompas.com, adding that the measures included intervention in the foreign exchange market to stabilize the rupiah in accordance with the country's economic fundamentals.
He denied BI would increase the seven-day reverse repo rate.
"Don't think that it is the only option," Dody said, adding that the central bank had also carried out a foreign exchange auction on Monday to help ease pressure off the rupiah.
A number of external factors have influenced the rupiah's depreciation, including the depreciation of the Turkish lira, a trade war between the US and China, as well as the devaluation of the yuan.
Dody expressed the hope that the rupiah would not weaken any further. "I hope this is only temporary, considering our strong economic fundamentals, as indicated by significant economic growth and low inflation," he added.
