Despite growing uncertainty about the global economy, the central bank`s board of governors believe that the domestic economic fundamentals remain strong, said Difi A Johansyah, the director of the bank`s public relations group, here on Tuesday.
To manage the pressure on the rupiah`s exchange rate due to the worsening European crisis and negative sentiment in the global financial market, BI called for increasing the supply of foreign currencies to the market to ensure that the rupiah`s movement will not deviate from that of major Asian currencies and Indonesia`s economic fundamentals.
He added that BI was trying to ensure adequate liquidity in both the rupiah market and the foreign currency market while at the same time intensifying its monetary operations, including developing foreign currency monetary instruments.
The uncertain and worsening European crisis, coupled with the US economy`s fragile recovery and a concurrent slowdown in the Chinese and Indian economies, still casts a shadow over the global economy`s prospects, he noted.
Under these circumstances, the country`s second-quarter and full-year economic growth will nevertheless range between 6.3 percent and 6.7 percent, with a biased risk to the bottom range.
The domestic economic growth will still be driven by strong consumption and high investment. On the other hand, the external sources of economic growth are expected to decline, along with the weakening demand and low global commodity prices.
(S012/INE/H-YH)
Editor: Suryanto
Copyright © ANTARA 2012
