ID :
18506
Tue, 09/09/2008 - 02:01
Auther :
Shortlink :
https://www.oananews.org//node/18506
The shortlink copeid
GOVERNOR: BI WILL ALWAYS IN MARKET TO FACE RUPIAH FLUACTUATIONS
Jakarta, Sept 8 (ANTARA) - Bank Indonesia governor Boediono said here on Monday that the central bank would always be in the market to face rupiah fluctuations.
"BI will always be in the market but not oppose the stream. We will make the rupiah movement smooth through implementation of correct policy," he said at a fast breaking gathering.
He said the policy to be used would not run against the stream that came from global movement because fighting it would need huge reserve funds.
"We will enter the market using foreign exchange reserves wisely and acceptable to the market," he said.
He said the country's foreign exchange reserves now stood at US$58.4 billion. "It once reached more than US$59 but it went up and down for market operations," he said.
He said last week's fluctuations were caused by global nervous conditions because of a world economic slowdown, high inflation and damage in the economic system in the US and Europe.
"In such a condition global market players will certainly try to secure their funds and bring them to their own countries and this is what has caused pressure on the rupiah," he said.
Boediono said many market players had now also considered the US dollar as the right currency for their investment so that its value had been increasing.
"This condition will not last long because investors will put their money in more attractive sectors," he said.
Boediono said Indonesia's economic condition was not as bad as in other countries such as in the US, Europe and other Asian countries.
"Indonesia is only facing a high inflation compared to other countries which are not only facing a high inflation but also an economic slowdown and disrupted financial system," he said.
"BI will always be in the market but not oppose the stream. We will make the rupiah movement smooth through implementation of correct policy," he said at a fast breaking gathering.
He said the policy to be used would not run against the stream that came from global movement because fighting it would need huge reserve funds.
"We will enter the market using foreign exchange reserves wisely and acceptable to the market," he said.
He said the country's foreign exchange reserves now stood at US$58.4 billion. "It once reached more than US$59 but it went up and down for market operations," he said.
He said last week's fluctuations were caused by global nervous conditions because of a world economic slowdown, high inflation and damage in the economic system in the US and Europe.
"In such a condition global market players will certainly try to secure their funds and bring them to their own countries and this is what has caused pressure on the rupiah," he said.
Boediono said many market players had now also considered the US dollar as the right currency for their investment so that its value had been increasing.
"This condition will not last long because investors will put their money in more attractive sectors," he said.
Boediono said Indonesia's economic condition was not as bad as in other countries such as in the US, Europe and other Asian countries.
"Indonesia is only facing a high inflation compared to other countries which are not only facing a high inflation but also an economic slowdown and disrupted financial system," he said.
