ID :
34967
Wed, 12/10/2008 - 20:39
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http://m.oananews.org//node/34967
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RUPIAH'S EXCHANGE RATE IMPROVING: BI
Jakarta, Dec 10 (ANTARA) - Bank Indonesia (BI) Governor Boediono said foreign exchange supply and demand conditions were returning to normal so that the past few days had seen a continuous improvement in the rupiah's exchange rate.
"We are seeing an improvement in the balance between supply of and demand for foreign currencies," the Indonesian central bank governor told a hearing of the House of Representatives (DPR)'s Commission XI which deals with financial affairs here on Wednesday.
He said US dollar demand at home had begun to drop so that stocks in the greenback had also increased. But he stopped short of predicting that the rupiah's appreciation in the past few days would continue. "Let's just wait and see," he said.
Asked whether the rupiah's strengthening was caused by BI's policy in regulating foreign exchange transactions recently, Boediono said BI had not yet evaluated the results of its regulation policy.
"We have not yet evaluated it but it aims to balance the supply and demand, and to stabilize the currency exchange rates," he said.
The rupiah gained significantly to below Rp11,000 per US dollar in the Jakarta interbank spot-market Tuesday afternoon on reports the US government was planning to bail out troubled US companies.
The rupiah was traded at Rp10,830/10,950, up 780 points from Rp11,600/Rp11,700 per US dollar late Tuesday.
The local currency has strengthened since Tuesday morning thanks to a report on the US government's plan to bail out three US automotive industries. Previously, the US government had provided a US$700 billion bailout package for Citibank.
Bank Indonesia (BI) saw the condition as the right momentum to strengthen the rupiah further to reach a level of below Rp11,000 per US dollar. BI intervened in the market by releasing US dollars into the domestic money market.
As a result, the rupiah gained significantly.
The strengthening of the rupiah should be safeguarded to prevent it from becoming a boomerang because a rapid and drastic appreciation could cause the local currency to fall again, economic observers warned.
"We are seeing an improvement in the balance between supply of and demand for foreign currencies," the Indonesian central bank governor told a hearing of the House of Representatives (DPR)'s Commission XI which deals with financial affairs here on Wednesday.
He said US dollar demand at home had begun to drop so that stocks in the greenback had also increased. But he stopped short of predicting that the rupiah's appreciation in the past few days would continue. "Let's just wait and see," he said.
Asked whether the rupiah's strengthening was caused by BI's policy in regulating foreign exchange transactions recently, Boediono said BI had not yet evaluated the results of its regulation policy.
"We have not yet evaluated it but it aims to balance the supply and demand, and to stabilize the currency exchange rates," he said.
The rupiah gained significantly to below Rp11,000 per US dollar in the Jakarta interbank spot-market Tuesday afternoon on reports the US government was planning to bail out troubled US companies.
The rupiah was traded at Rp10,830/10,950, up 780 points from Rp11,600/Rp11,700 per US dollar late Tuesday.
The local currency has strengthened since Tuesday morning thanks to a report on the US government's plan to bail out three US automotive industries. Previously, the US government had provided a US$700 billion bailout package for Citibank.
Bank Indonesia (BI) saw the condition as the right momentum to strengthen the rupiah further to reach a level of below Rp11,000 per US dollar. BI intervened in the market by releasing US dollars into the domestic money market.
As a result, the rupiah gained significantly.
The strengthening of the rupiah should be safeguarded to prevent it from becoming a boomerang because a rapid and drastic appreciation could cause the local currency to fall again, economic observers warned.
