Fluctuation of rupiah against foreign currencies remains stable: BI

Jakarta (ANTARA News) - The fluctuation of the rupiahs exchange rate against foreign currencies remains stable thanks to the countrys strong economic fundamentals, Bank Indonesia (BI) said.

The indicators of the improving national economy can be seen from the declining current account deficit (CAD) and low inflation rate, chief of the BIs financial market development Nanang Hendarsyah said here on Thursday.

"In 2013, our CAD almost reached 4 percent. Now it stands at only 1.75 percent. Likewise the inflation rate will likely fall to a range of 3-5 percent this year compared to 7 percent in 2013," he said.

In 2017, the inflow of foreign capital to the domestic market particularly the state bond market is quite large. In addition, Indonesias improving exports also have contributed to the stability of the rupiahs exchange rate, he said.

"The strength of supply and demand in the market has run naturally, without being influenced by the regulator. The flow of foreign currency runs more smoothly compared to three to four years ago," he said.

The rupiahs stable exchange rate is also the result of Bank Indonesias intervention in the market particularly when the volatility of the rupiahs exchange rate moved excessively.

"With Bank Indonesia staying in the market, the rupiahs exchange rate has become stable on the emerging market scale," he said.

The rupiah rose 29 points to close at Rp13,300 against the dollar in the Jakarta inter-bank spot market on Thursday evening compared to the previous close of Rp13,329.(*)