KONTAN.CO.ID - JAKARTA. Bank Indonesia (BI) has assured the public that Indonesia’s economic fundamentals are improving, as indicated by the increase in foreign exchange reserves. Therefore, the central bank believes the unstable rupiah exchange rate is triggered by external factors. BI deputy governor Dody Budi Waluyo said in Surabaya on Thursday that foreign exchange reserves had increased by US$2 billion to $117.2 billion in November, while full-year inflation was estimated to reach only around 3.5 percent. “The credit growth is high enough at around 12 percent. So, as we see from the macroeconomic indicators, the rupiah should have been strengthening, but it has not happened yet,” Dody said, as quoted by The Jakarta Post.
Rupiah volatility caused by external factors: BI
KONTAN.CO.ID - JAKARTA. Bank Indonesia (BI) has assured the public that Indonesia’s economic fundamentals are improving, as indicated by the increase in foreign exchange reserves. Therefore, the central bank believes the unstable rupiah exchange rate is triggered by external factors. BI deputy governor Dody Budi Waluyo said in Surabaya on Thursday that foreign exchange reserves had increased by US$2 billion to $117.2 billion in November, while full-year inflation was estimated to reach only around 3.5 percent. “The credit growth is high enough at around 12 percent. So, as we see from the macroeconomic indicators, the rupiah should have been strengthening, but it has not happened yet,” Dody said, as quoted by The Jakarta Post.