Indonesia: Darmin calls for calm as rupiah weakens against US dollar

  • Coordinating Economic Minister Darmin Nasution has called for calm over the rupiah weakening against the US dollar, saying that such a development has both a positive and negative impact.
  • “I will say, there is such a development. But don’t worry too much,” Darmin said. He said the rupiah weakening was caused by the strengthening US dollar, which also affected other currencies.
  • On 23 Apr 18, the rupiah was quoted at IDR13,890 against USD1 at the Jakarta Interbank Spot Dollar Rate (JISDOR), the weakest figure in the last two and a half years.
  • Meanwhile, according to Bloomberg, the rupiah spot exchange rate was quoted at IDR13,921 against USD1 at the 24 Apr 18 opening from IDR13,975 at the 23 Apr 18 closing position.
  • Darmin denied that the decline of the rupiah value was caused by internal factors, saying there was no problem with Indonesia’s fundamental economy.
  • Meanwhile, Bank Indonesia Governor Agus Martowardojo said the central bank was taking measures to stabilize the currency. “Bank Indonesia is always open to stabilizing the rupiah so that the value will be in accordance with its fundamental,” Agus said.
  • He said the rupiah had been under pressure since 20 Apr 18 due to the strengthening US dollar, sparked by the increasing value of US treasury bills as well as expectations of a third increase to the Fed Fund Rate.

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