ID :
25159
Fri, 10/17/2008 - 21:18
Auther :
Shortlink :
http://m.oananews.org//node/25159
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FOREIGN EXCHANGE RESERVES SAFE UNTIL YEAR END : BI CHIEF
Jakarta, Oct 17 (ANTARA) - Bank Indonesia (central bank) Governor Boediono said the amount of the country's foreign exchange reserves were now at a level safe enough until the end of the year although the bank was always ready to use part of them to intervene in the market to safeguard the country's currency.
"The reserves are something that must be used at the right time. They are kept safe and will be used as reuqired by the situation. We use them when a supply of foreign exchange is needed," he said.
During the past two months, the country's foreign exchange reserves had dropped continuously. They dropped by more than two billion US dollars from US$60.563 in July 31 to US$58.356 in August 29 and continued to decline to US$57 billion in September 29.
Standard Chartered Bank economist Fauzi Ikhsan said if the Indonesian central bank only used a direct intervention method to stabilize the rupiah the reserves would be eroded too deeply.
In view of that the bank has taken steps to ease liquidity to support the currency so that it will not fluctuate too much such as reducing the foreign currency reserve requirement for banks from formerly 3.0 percent to 1.0 percent.
He said the policy supported supply of foreign currencies in banks that could be used for transactions with their customers.
Bank Indonesia senior deputy governor Miranda Goeltom earlier said the country's foreign exchange reserves that reached 4.6 times the value of the country's imports and overseas debts.
The rupiah strangthened at the end of this week. Early this week the middle rate of the rupiah exchange according to Bank Indonesia was recorded at Rp9,865 against the US dollar. On Friday the rupiah exhange rate was Rp9,785 against the US dollar.
"The reserves are something that must be used at the right time. They are kept safe and will be used as reuqired by the situation. We use them when a supply of foreign exchange is needed," he said.
During the past two months, the country's foreign exchange reserves had dropped continuously. They dropped by more than two billion US dollars from US$60.563 in July 31 to US$58.356 in August 29 and continued to decline to US$57 billion in September 29.
Standard Chartered Bank economist Fauzi Ikhsan said if the Indonesian central bank only used a direct intervention method to stabilize the rupiah the reserves would be eroded too deeply.
In view of that the bank has taken steps to ease liquidity to support the currency so that it will not fluctuate too much such as reducing the foreign currency reserve requirement for banks from formerly 3.0 percent to 1.0 percent.
He said the policy supported supply of foreign currencies in banks that could be used for transactions with their customers.
Bank Indonesia senior deputy governor Miranda Goeltom earlier said the country's foreign exchange reserves that reached 4.6 times the value of the country's imports and overseas debts.
The rupiah strangthened at the end of this week. Early this week the middle rate of the rupiah exchange according to Bank Indonesia was recorded at Rp9,865 against the US dollar. On Friday the rupiah exhange rate was Rp9,785 against the US dollar.
