ID :
35378
Sat, 12/13/2008 - 07:59
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https://www.oananews.org//node/35378
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BI TO PROVIDE MORE "AMMUNITION" TO STABILIZE RUPIAH
Jakarta, Dec 12 (ANTARA) - Bank Indonesia (BI) Governor Boediono said the central bank would provide more "ammunition" to maintain the stability of the rupiah.
"We have ammunition and God willing it will be increased in the next few months," he said.
He said he would always try to make the rupiah position good to support the country's macro-economic condition.
"The exchange rate is up and down according to demand but we, certainly, are always watching it meaning we continued to make its position good and quite stable at a level needed by the macro economy," he said.
In line with the free-floating system that the country is following his office cannot dictate the market with regard to the rupiah exchange rate against foreign currencies particularly the US dollar. "We can only do something if we are always in the market," he said.
The rupiah exchange rate has been fluctuating sharply and once reached Rp9,000 against the dollar at the end of July but declined afterwards to Rp12,000 in November.
At the end of July the dollar was sold at Rp9,072 and bought at Rp9,164. In October 31 its selling rate was Rp11,050 while its buying rate was Rp10,940 to the greenback. At the end of November the rate reached the highest above Rp12,000. At the time the US dollar was sold at Rp 12,338 and bought at Rp12,462.
The rupiah however was strengthening this week. The dollar was sold at Rp10,995 and bought at Rp11,105 this week.
Due to rupiah depreciation the country's foreign reserves had dropped. At the end of July they were recorded at US$60,563 billion but in August the had dropped to US$58.358 billion.
The reserves continued to drop in September to reach US$57.108 billion and US$50.580 billion in October and US$50.2 billion in November.
Boediono said the country's foreign exchange reserves were now recorded at US$50.6 billion or had risen by around US$420 million compared to US$50.18 billion recorded at the end of November.
The rupiah exchange rate at the Jakarta spot market on Friday dropped sharply to above Rp11,000 against the US dollar caused by active buying of the US dollar.
The president director of Financorpindo Nusa, Edwin Sinaga, said dollar demand in the domestic market was quite strong as individuals as well as state-owned companies needed it to meet their need. He said state-owned companies needed the dollar to pay their debts.
He said Bank Indonesia had to cooperate with foreign central banks to be able to supply more dollar in the domestic market. He said without it Bank Indonesia would find difficulties meeting the demand.
He also said that Bank Indonesia must continue watching foreign banks that were trading foreign currencies so that their dollar need could be controlled.
"We have ammunition and God willing it will be increased in the next few months," he said.
He said he would always try to make the rupiah position good to support the country's macro-economic condition.
"The exchange rate is up and down according to demand but we, certainly, are always watching it meaning we continued to make its position good and quite stable at a level needed by the macro economy," he said.
In line with the free-floating system that the country is following his office cannot dictate the market with regard to the rupiah exchange rate against foreign currencies particularly the US dollar. "We can only do something if we are always in the market," he said.
The rupiah exchange rate has been fluctuating sharply and once reached Rp9,000 against the dollar at the end of July but declined afterwards to Rp12,000 in November.
At the end of July the dollar was sold at Rp9,072 and bought at Rp9,164. In October 31 its selling rate was Rp11,050 while its buying rate was Rp10,940 to the greenback. At the end of November the rate reached the highest above Rp12,000. At the time the US dollar was sold at Rp 12,338 and bought at Rp12,462.
The rupiah however was strengthening this week. The dollar was sold at Rp10,995 and bought at Rp11,105 this week.
Due to rupiah depreciation the country's foreign reserves had dropped. At the end of July they were recorded at US$60,563 billion but in August the had dropped to US$58.358 billion.
The reserves continued to drop in September to reach US$57.108 billion and US$50.580 billion in October and US$50.2 billion in November.
Boediono said the country's foreign exchange reserves were now recorded at US$50.6 billion or had risen by around US$420 million compared to US$50.18 billion recorded at the end of November.
The rupiah exchange rate at the Jakarta spot market on Friday dropped sharply to above Rp11,000 against the US dollar caused by active buying of the US dollar.
The president director of Financorpindo Nusa, Edwin Sinaga, said dollar demand in the domestic market was quite strong as individuals as well as state-owned companies needed it to meet their need. He said state-owned companies needed the dollar to pay their debts.
He said Bank Indonesia had to cooperate with foreign central banks to be able to supply more dollar in the domestic market. He said without it Bank Indonesia would find difficulties meeting the demand.
He also said that Bank Indonesia must continue watching foreign banks that were trading foreign currencies so that their dollar need could be controlled.
