Analysts attributed the stability to Bank Indonesia`s regulation banning hedging with non-delivery forward (NDF)
"Bank Indonesia bans banks from doing hedging transaction with NDF at home and abroad to prevent rupiah speculation," Samuel Sekuritas` economist Lana Soelistianingsih said.
Lana said the ban was already contained in a regulation of the central bank in 2008 on foreign exchange transaction on rupiah.
Under the regulation, all foreign exchange transaction must be fully delivered , she said, adding netting and NDF transactions are banned.
She said despite the ban, some banks especially foreign banks still made NDF transactions to banks in Singapore.
"Rupiah lost up to 7.2 percent of its value year-on-year throughout 2012 and became an instrument of speculation when it hit the psychological level of 9,500 per dollar," she said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
