Rupiah Rp 16.000: Bank Indonesia Tegaskan Intervensi Pasar Pakai Tiga Jurus Sekaligus | Kontan News

Summary

The Bank of Indonesia has intervened in the foreign exchange market to maintain market confidence in the rupiah. Edi Susianto, head of the Monetary and Securities Asset Management Department, mentioned bold interventions across three key market areas: spot markets, non-deliverable forwards, and government bond purchases. The rupiah hit its lowest point in four months against the US dollar, dropping 0.47% to 15,995, due to a strong US economy, high inflation, and rising geopolitical tensions between China and Taiwan. The central bank's short-term policy focus remains on stability, with a policy meeting scheduled for December 17-18, 2024.

Takeaways

• 😀 Indonesia has intervened in the foreign exchange market to maintain market confidence in the rupiah.
• 😀 The intervention was carried out boldly and covered three key areas: spot markets, forward markets, and non-deliverable domestic markets.
• 😀 The Bank of Indonesia also purchased government bonds in the secondary market as part of the intervention.
• 😀 The rupiah hit its lowest point in four months against the US dollar on Friday, falling by 0.47% to 15,995 per dollar.
• 😀 The depreciation of the rupiah was attributed to strong US economic performance, high inflation, and rising geopolitical tensions between China and Taiwan.
• 😀 The central bank's short-term policy focus is on stabilizing the rupiah.
• 😀 The Bank of Indonesia will hold its next policy meeting on December 17-18, 2024.
• 😀 The rupiah exchange rate surpassed Rp16,000 per US dollar at the close of trading on December 13, 2024.
• 😀 Most currencies in Asia weakened, with Thailand’s currency experiencing the largest decline.
• 😀 The Indian rupee strengthened in Asia, rising by 0.07%, followed by the Hong Kong dollar, which gained 0.01%.

Q & A

Why did Indonesia intervene in the foreign exchange market?

Indonesia intervened in the foreign exchange market to maintain market confidence in the rupiah, ensuring its stability amidst external challenges.

What methods did Indonesia use to intervene in the foreign exchange market?

Indonesia's intervention involved three key methods: spot market operations, non-deliverable forwards in the domestic market, and purchasing government bonds in the secondary market.

How did the rupiah perform in relation to the US dollar?

The rupiah fell to its lowest level in four months against the US dollar, dropping by 0.47% to reach 15,995 per dollar.

What factors contributed to the depreciation of the rupiah?

The depreciation of the rupiah was due to strong US economic performance, high inflation, and increased geopolitical tensions between China and Taiwan.

What is the focus of Indonesia's central bank's short-term policy?

The central bank's short-term policy is focused on stabilizing the currency and ensuring market confidence.

When will the next meeting of Indonesia's central bank be held?

The next meeting of Indonesia's central bank will be held on December 17-18, 2024.

How did the rupiah perform in the spot market by December 13, 2024?

By December 13, 2024, the rupiah in the spot market exceeded Rp 16,000 per US dollar.

Which Asian currencies showed significant movements during this period?

Most Asian currencies weakened, with the Thai baht experiencing the largest depreciation, while the Indian rupee strengthened the most in Asia, gaining 0.07%. The Hong Kong dollar also saw a slight increase of 0.01%.

What impact did geopolitical tensions have on the rupiah?

Geopolitical tensions, especially between China and Taiwan, contributed to increased uncertainty and instability in the currency market, which affected the rupiah's performance.

What was the overall trend in Asian currencies during this period?

The overall trend was a weakening of most Asian currencies, with only a few like the Indian rupee and Hong Kong dollar showing gains.