BI Giving More Room for Rupiah to Rise to Fight Inflation

BI Giving More Room for Rupiah to Rise to Fight Inflation

- Bank Indonesia thinks it's “impossible“ to fight the rupiah's appreciation and is giving the currency more room to rise to help fight inflation, its deputy governor said Thursday.

“It's impossible to go against the currency strengthening trend, but we can't disrupt our external and internal balance. So we're intervening both ways and also observing the spot level,“ Budi Mulya said in a keynote speech.

“We're giving more room (for the rupiah) to rise to help contain inflation, but it must remain consistent with the overall macro outlook,“ Mulya said.

“Amid quite huge fund inflows, the pace of appreciation tends to be very quick. In these circumstances, BI needs to intervene to ensure a more gradual pace and not add uncertainty for participants in the economy,“ Mulya added.

The rupiah is the biggest gainer against the greenback so far this year in Asia.

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