The rupiah's exchange rate could be maintained amid mounting uncertainty about the global financial marketJakarta (ANTARA) - Bank Indonesia has recorded a net capital inflow of US$1.1 billion in the domestic financial market between January 1 and February 3, 2022.
The continued capital inflow, along with domestic foreign currency supply, positive perception of Indonesia's economic prospects, and BI's steps to stabilize the rupiah's exchange rate contributed to the rupiah's appreciation, BI Governor Perry Warjiyo said while announcing the outcome of the meeting of the bank's board of governors in Jakarta on Thursday.
"The rupiah's exchange rate could be maintained amid mounting uncertainty about the global financial market," he added.
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On February 9, 2022, the rupiah strengthened 0.17 percent on a point-to-point basis, he disclosed. However, it weakened 0.27 percent on a pro-rata basis compared to January 2022, he noted.
Compared with late last year, the rupiah depreciated by nearly 0.73 percent, he said adding, other developing countries' currencies also recorded a depreciation, including the Philippine peso (0.71 percent), the Indian rupee (0.65 percent), and the South Korean won (0.62 percent).
Foreign capital inflows in the domestic financial market will potentially support a continued surplus in the balance of capital and financial transactions in 2022, Warjiyo said.
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This way the country's balance of payments (NPI) is expected to be always maintained, with the current account deficit staying low within the range of 1.1–1.9 percent of the gross domestic product, he explained.
Indonesia's foreign exchange reserves, which reached US$141.3 billion in late January 2022 will help achieve the forecast, he added.
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Translator: Agatha Olivia V, Suharto
Editor: Fardah Assegaf
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