ID :
26335
Fri, 10/24/2008 - 16:34
Auther :
Shortlink :
http://m.oananews.org//node/26335
The shortlink copeid
RUPIAH UP 20 POINTS TO RP9,940 PER DOLLAR ON FRIDAY MORNING
Jakarta, Oct 24 (ANTARA) - The rupiah rose 20 points to Rp9,940/9,950 per dollar in the Jakarta interbank spot market on Friday morning from Rp9,960/9,970 per dollar the day before after Bank Indonesia (the central bank/BI) lowered interest on banks' reserve requirements to 7.5 percent from 9 percent.
"BI has lowered the interest rate on reserve requirements to ease the tight liquidity of the banking industry due to a drop in the amount of third party funds from depositors," Retail Banking Director of PT Bank Mega Tbk Kostaman Thayib said here on Friday.
He said Bank Indonesia was trying to encourange banks to continue to carry out their intermediary functions in support of the country's economic growth.
But the central bank itself had yet to cut its benchmark interest rate, locally known as BI Rate, and therefore, lending rates were still high, he said.
"We are optimistic that if inflationary pressure in 2008 fades, Bank Indonesia will soon lower the key rate. But I think that inflationary pressure this month is still high," he said.
He said the rupiah would likely plunge to Rp10,000 per dollar at the end of this month due to the rising pressure of the US financial crisis.
The rupiah's fall would also result from the weakening of the regional stock exchanges that might have an adverse impact on the Indonesian stock exchange, he said.
After all, the local unit still had a chance to strengthen after central banks had established cooperation in injecting fresh funds into the global market, he said.
"BI has lowered the interest rate on reserve requirements to ease the tight liquidity of the banking industry due to a drop in the amount of third party funds from depositors," Retail Banking Director of PT Bank Mega Tbk Kostaman Thayib said here on Friday.
He said Bank Indonesia was trying to encourange banks to continue to carry out their intermediary functions in support of the country's economic growth.
But the central bank itself had yet to cut its benchmark interest rate, locally known as BI Rate, and therefore, lending rates were still high, he said.
"We are optimistic that if inflationary pressure in 2008 fades, Bank Indonesia will soon lower the key rate. But I think that inflationary pressure this month is still high," he said.
He said the rupiah would likely plunge to Rp10,000 per dollar at the end of this month due to the rising pressure of the US financial crisis.
The rupiah's fall would also result from the weakening of the regional stock exchanges that might have an adverse impact on the Indonesian stock exchange, he said.
After all, the local unit still had a chance to strengthen after central banks had established cooperation in injecting fresh funds into the global market, he said.
