ID :
24545
Wed, 10/15/2008 - 15:27
Auther :
Shortlink :
http://m.oananews.org//node/24545
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BI FLOODING MARKET WITH US DOLLARS
Jakarta, Oct 14 (ANTARA) - Bank Indonesia continued to maintain the stability of the country's rupiah currency and bank liquidity by flooding the market with foreign currencies, US dollars in particular, that had been lying idle in the central bank.
It was done through reducing the minimum reserve requirement for foreign currencies for banks from previously three percent to one percent starting on Tuesday, the bank's governor, Boediono, said here on Tuesday.
"The aim is to give banks room to use the foreign currencies now being kept idle at Bank Indonesia," he said at a press conference.
He said a series of policies that had been produced by Bank Indonesia so far was an integral part of the government's effort in dealing with the impact of the financial crisis in the US.
It is estimated a total of US$721 millions would be added to the market liquidity following the central bank's decision.
According to Bank Indonesia the funds came from the total third party foreign currencies now reaching US$36 billion until October 3, 2008.
According to the previous reserve requirement which was set at three percent the total funds that should be kept at Bank Indonesia reached US$1.1 billion.
Following the reduction of the requirment the funds to reach only US$360 million meaning there would be an additional liquidity of US$721 million in the market
It was done through reducing the minimum reserve requirement for foreign currencies for banks from previously three percent to one percent starting on Tuesday, the bank's governor, Boediono, said here on Tuesday.
"The aim is to give banks room to use the foreign currencies now being kept idle at Bank Indonesia," he said at a press conference.
He said a series of policies that had been produced by Bank Indonesia so far was an integral part of the government's effort in dealing with the impact of the financial crisis in the US.
It is estimated a total of US$721 millions would be added to the market liquidity following the central bank's decision.
According to Bank Indonesia the funds came from the total third party foreign currencies now reaching US$36 billion until October 3, 2008.
According to the previous reserve requirement which was set at three percent the total funds that should be kept at Bank Indonesia reached US$1.1 billion.
Following the reduction of the requirment the funds to reach only US$360 million meaning there would be an additional liquidity of US$721 million in the market
