Jakarta –
Several economists have explained why the rupiah exchange rate continues to weaken against the US dollar, reaching Rp. What are the reasons?
Associate Researcher at the Institute for Economic and Financial Development (INDEF), Asmiati Malik, explained that the decision of the central bank of the United States (US) or Federal was the first reason that pressured the value of the rupiah against US dollars. Reserve (The Fed) to cancel the reduction of the benchmark interest rate.
The reference interest rate is the rate of interest set by the central bank each month. For different countries, the Fed’s policy of keeping benchmark interest rates can indirectly affect global capital flows, including the presence of investment in Indonesia. This policy makes the US dollar stronger than the rupiah.
In addition, the burning conflict in the Middle East between Iran and Israel could force the Fed to continue to hold its interest rate. This is because the world oil prices may increase which will affect different economic sectors.
“As long as the Fed doesn’t continue to lower interest rates, of course there will be high interest rates.” The Rupiah will definitely be under pressure because the dollar will continue to return home, “Asmiati said on the agenda for a Public Debate about. ‘Economic Policy and the Future of Women Economists in the Middle of Global Tensions War’ online , Saturday (20/4/2024).
The second reason, Asmiati said, is that Indonesia is still dependent on imports for a number of items. This leaves the Indonesian economy heavily affected by geopolitical tensions in other countries.
“Our macroeconomic components, from investment to exports and imports, are highly dependent on global trade and the global economy,” he explained.
The Head of the Center for Digital Economy and SMEs at INDEF, Eisha Maghifuruha Rachbini, expressed the same. According to him, Indonesia’s economy is still dependent on imports, so the macroeconomic stability of the economy is still largely dependent on external factors.
Therefore, he explained that in order to maintain the rupiah exchange rate, Bank Indonesia has the duty to maintain the domestic inflation and the rupiah exchange rate. Both of these functions are useful for maintaining the stability of Indonesia’s economy.
“The value of the rupiah, right, has two meanings, namely inflation and the exchange rate. If it is felt that the increase in the depreciation of the rupiah will have a significant impact on the value of the rupiah and domestic macroeconomic stability, for example macroeconomics such as people’s purchasing power and in terms of the real sector, I think the exchange rate to be stable,” he concluded.
(fdl/fdl)
2024-04-20 15:00:37
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