CNN Indonesia
Monday, 23 Oct 2023 20:00 WIB
Minister of Finance Sri Mulyani said that the recent weakening of the rupiah was triggered by a signal of an increase in the US central bank’s benchmark interest rate from the Fed. (ANTARA PHOTOS/Aprillio Akbar).
Jakarta, CNN Indonesia —
Minister of Finance Sri Mulyani said weakening rupiah exchange rate almost reaching IDR 16 thousand per United States dollars (US) cannot be separated from the conditions in Uncle Sam’s country
He said US inflation was still quite high. The US central bank, the Fed, responded to this by issuing a signal that an increase in the benchmark interest rate would be carried out within a fairly long time or higher for longer.
This condition has caused capital flows to return to the US.
“This is what causes a lot of things to happen capital flowing back “to the US, causing the dollar index to strengthen at 106. The Governor (Bank Indonesia) previously said that at 93, it means the US dollar is strong globally,” he said at the Presidential Palace, Monday (23/10).
Responding to this condition, the state treasurer said the Financial System Stability Committee (KSSK) would synchronize monetary and fiscal policies. That way, if the trigger for the weakening of the rupiah exchange rate comes from another country such as the US, the impact can be mitigated.
“And we will minimize (the impact) on the exchange rate, inflation, economic growth and financial system stability. We will continue to do that with incentives,” he said.
The rupiah exchange rate has continued to weaken recently, approaching the level of IDR 16 thousand. In trading earlier this week, the rupiah closed at IDR 15,933 per US dollar.
Garuda’s currency weakened 61 points or minus 0.38 percent from previous trading.
Likewise, the Bank Indonesia (BI) Jakarta Interbank Spot Dollar Rate (Jisdor) reference rate put the rupiah weakening to IDR 15,943 per US dollar in today’s trading.
(df/agt)
2023-10-23 13:00:00
#Sri #Mulyani #Speaks #Rupiah #Weakening #Approaching #Level #IDR #Thousand
