"BI is stabilizing in the forex market. So far, (the pressure) can still be controlled, and we are making efforts," Executive Director of the Monetary Management Department, BI, Nanang Hendasrah said.
Jakarta (ANTARA News) - Bank Indonesia (BI) views the rupiah`s weakening to a new psychological limit of Rp14,600 per US dollar, Monday, as being inseparable from the negative impact of the global market sentiment following Turkey`s financial turmoil.

Executive Director of the Monetary Management Department, the Indonesian central bank BI, Nanang Hendasrah noted during a telephonic conversation in Jakarta on Monday that "all" turmoil in the domestic financial market was due to a series of actions by investors, who were wary of the effects of Turkey`s continued economic pressure on the global financial markets.

Nanang admitted that the pressure on the rupiah until Monday afternoon could still be controlled.

"BI is stabilizing in the forex market. So far, (the pressure) can still be controlled, and we are making efforts," Nanang remarked.

BI has begun to intervene in the forex market to ensure that foreign exchange liquidity is maintained, so that the US dollar prices are not higher.

Nanang noted that if the pressure becomes stronger, BI will conduct dual interventions with stabilization in the Government Securities market.

Global financial markets are volatile owing to concerns over the negative impact of the financial system turmoil in Turkey. Lira`s currency has plunged significantly and this Monday is at 7.24 lira per US dollar. The figure shows that the Turkish Lira has weakened by more than 40 percent in 2018, as quoted by Reuters.

Turmoil in the financial system in Turkey began with a quite strong intervention from Turkish President Erdogan to reduce the benchmark interest rates and Turkey`s deteriorating relations with the United States.

In the domestic market, at the opening of trading this Monday, the rupiah weakened to 157 points to Rp14,643 as compared to the previous position of Rp14,486 per US dollar. At the Jakarta Interbank Spot Dollar Rate (Jisdor) reference rate announced by BI this Monday, one US dollar was equivalent to Rp 14,583 per US dollar or shows a rupiah depreciation of 146 points as compared to Friday (Aug 10), which was Rp14,437 per US dollar .

The development of the spot market this Monday afternoon until 11:45 WIB, the rupiah was traded at Rp14,612 per US dollar.

Reported by Indra Arief Pribadi
Translated by Eliswan, Suharto

Reporter: antara
Editor: Heru Purwanto
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