BANDUNG, Governor of Bank Indonesia (BI) Nasution said it would keep the exchange rate does not deviate from its fundamental value in the range of Rp 8,900 - Rp 9,300 per dollar the United States (U.S.).
"We will keep the rupiah did not deviate from its fundamental value. And there are fundamental values that count Rp 8,900 to Rp 9,300 per U.S. dollar. It could also slightly below that," Nasution said in Bandung on Wednesday.
According to him, to keep the rupiah does not fluctuate too high, the central bank will buy foreign exchange from the money market so that it will increase the supply of dollars so the value is not too strong.
However, with so many dollars, BI must be pulled to prevent inflation by Bank Indonesia Certificates. "It's a cost for BI and affecting the balance of BI," he said.
He explained that since 2008 until the current crisis, many foreign fund flows into emerging market countries, including Indonesia, due to the economic recovery in the world and pulled the economic growth of those countries.
"The U.S. dollar spread to many countries so that its value fell while currencies of other countries including the rupiah strengthened. It's happening all over the world," he said.
The weakening U.S. dollar if allowed, would make the currency emerging market countries, including Indonesia, will be too strong so they can get out of its fundamental value and could disrupt the economy. "This trend will happen prolonged," Nasution said.
The rupiah continued to strengthen since the beginning of the year and in the second half through Rp 9,000 per U.S. dollar and recently was in the position of Rp 8975 per U.S. dollar.
0 comments:
Post a Comment