ID :
27442
Thu, 10/30/2008 - 15:06
Auther :
Shortlink :
http://m.oananews.org//node/27442
The shortlink copeid
BI NEEDS TO MAINTAIN BANKS' LIQUIDITY: OBSERVER
Jakarta, Oct 30 (ANTARA) - Bank Indonesia (BI/the central bank) needs to maintain the liquidity requirement so that banks would not run short of liquidity reserves that would create panic effect amid the downward trend in the rupiah exchange rate against the US dollar, a bank analyst said.
Director of Info Bank Research Bureau Eko B Supriyanto said that the problem now did not rest merely on the blanket guarantee for customers with a deposit of up to Rp2 billion but more importantly on how to maintain effective banks liquidity.
Besides, he said, the problem that should also be overcome was to prevent funds from being taken out from banks and then be used for speculative buying of dollars. All this will cause panic.
"The problem is how to safeguard bank liquidity and to save banks from the impact of financial crisis as a result of panic by customers who have a deposit of up to Rp2 billion," he said.
"After all, our neighboring countries are able to provide a 100 percent guarantee and that is the problem. Because of the 100 percent guarantee, many players make speculative buying of large volumes of dollars and then go away," he said.
Therefore, the said, the government has to maintain banks liquidity so that it would not be depleted that could create panic effect.
In the meantime, the rupiah value continued to suffer from pressures due to dollar speculative buying by investors and money managers who were losing in the capital market.
PT Bank Rakyat Indonesia (BRI) chief economist Djoko Retnadi said at present condition the central bank (BI) must convince the public that it was able to overcome the fluctuations of the currency exchange rates.
"The problem now does not exist with banks but with the fluctuations of the currency exchange rates. And BI must convince the public that it's able to resolve the problem," Retnadi said.
Director of Info Bank Research Bureau Eko B Supriyanto said that the problem now did not rest merely on the blanket guarantee for customers with a deposit of up to Rp2 billion but more importantly on how to maintain effective banks liquidity.
Besides, he said, the problem that should also be overcome was to prevent funds from being taken out from banks and then be used for speculative buying of dollars. All this will cause panic.
"The problem is how to safeguard bank liquidity and to save banks from the impact of financial crisis as a result of panic by customers who have a deposit of up to Rp2 billion," he said.
"After all, our neighboring countries are able to provide a 100 percent guarantee and that is the problem. Because of the 100 percent guarantee, many players make speculative buying of large volumes of dollars and then go away," he said.
Therefore, the said, the government has to maintain banks liquidity so that it would not be depleted that could create panic effect.
In the meantime, the rupiah value continued to suffer from pressures due to dollar speculative buying by investors and money managers who were losing in the capital market.
PT Bank Rakyat Indonesia (BRI) chief economist Djoko Retnadi said at present condition the central bank (BI) must convince the public that it was able to overcome the fluctuations of the currency exchange rates.
"The problem now does not exist with banks but with the fluctuations of the currency exchange rates. And BI must convince the public that it's able to resolve the problem," Retnadi said.
