ID :
24150
Mon, 10/13/2008 - 14:05
Auther :
Shortlink :
http://m.oananews.org//node/24150
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RUPIAH STRENGTHENS AMIDST BI`S PLAN TO CONTROL FOREX TRADING
Jakarta, Oct 13 (ANTARA) - The rupiah strengthened against the dollar in the Jakarta interbank spot market on Monday morning following a report that Bank Indonesia (the central bank/BI) would control banks engaged in foreign exchange trading.
The Indonesian currency traded at Rp9,820/9,830 per dollar on Monday morning compared with Rp9,850/10,050 per dollar at the weekend, up 30 points.
PT Finance Corpindo President Director Edwin Sinaga said the central bank's plan to control foreign exchange trading had prompted banks to take prudent steps in making foreign exchange transactions, causing the rupiah which has come under constant pressure since the past week to gain ground.
"We are optimistic that Bank Indonesia's measure will have a positive impact on the money market, the rupiah in particular," he said.
In addition, Bank Indonesia would also keep intervening in the market to ease market pressure on the rupiah, he said.
He said the rupiah received another boost after the World Bank pledged to extend US$5 billion in loans to boost the country's economic growth.
The World Bank was to extend loans to Indonesia if its economy grew less than 6 percent, he said.
The rupiah's appreciation against the dollar was expected to continue the more so because the global economic crisis would begin to fade after a number of central banks agreed to inject funds into the money market to boost economic growth, he said.
He estimated the rupiah would continue to strengthen on Monday evening thanks to positive market sentiment.
"We believe there won't be volatile market situation like before after a number of central banks have injected funds into the market," he said.
The Indonesian currency traded at Rp9,820/9,830 per dollar on Monday morning compared with Rp9,850/10,050 per dollar at the weekend, up 30 points.
PT Finance Corpindo President Director Edwin Sinaga said the central bank's plan to control foreign exchange trading had prompted banks to take prudent steps in making foreign exchange transactions, causing the rupiah which has come under constant pressure since the past week to gain ground.
"We are optimistic that Bank Indonesia's measure will have a positive impact on the money market, the rupiah in particular," he said.
In addition, Bank Indonesia would also keep intervening in the market to ease market pressure on the rupiah, he said.
He said the rupiah received another boost after the World Bank pledged to extend US$5 billion in loans to boost the country's economic growth.
The World Bank was to extend loans to Indonesia if its economy grew less than 6 percent, he said.
The rupiah's appreciation against the dollar was expected to continue the more so because the global economic crisis would begin to fade after a number of central banks agreed to inject funds into the money market to boost economic growth, he said.
He estimated the rupiah would continue to strengthen on Monday evening thanks to positive market sentiment.
"We believe there won't be volatile market situation like before after a number of central banks have injected funds into the market," he said.
