Economics
Bank Indonesia Intensifies Intervention to Stem Rupiah’s Fall
- Rupiah is down more than 7% so far this year, most in Asia
- New Jakarta restrictions could weigh on economic recovery
A parking attendant wearing a protective face mask handles Indonesian rupiah banknotes in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Bank Indonesia is intensifying its intervention in currency markets to keep the rupiah from depreciating further, as renewed social restrictions to stop coronavirus from spreading in Jakarta threaten to weigh on the economy.
The rupiah fell as much as 0.6% on Friday to 14,950 per dollar, its lowest level since May 12. That led Bank Indonesia to intervene in the foreign exchange spot market, as well as in the domestic non-deliverable forwards market through brokers, to prevent further declines, according to Nanang Hendarsah, the bank’s executive director for monetary management.