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THE WEAKENING OF THE RUPIAH IS STILL REASONABLE COMPARED TO REGIONAL CURRENCIES
THE WEAKENING OF THE RUPIAH IS STILL REASONABLE COMPARED TO REGIONAL CURRENCIES
Saturday, 13 February 2021

VIVAnews - The rupiah exchange rate on Monday, July 8, 2013 closed lower at Rp 9,955 per US dollar. Bank Indonesia's middle rate data even peg the rupiah to near Rp 10,000 per US dollar.

Based on data from BI, at the beginning of the transaction this week, the rupiah was at the level of Rp9,960, or again depressed from Friday's position last weekend in the position of Rp9.945 per US dollar.

Analyst of Indonesia's Commodity and Derivatives Stock Development Division, Ibrahim, in his accepted analysis VIVAnews, Tuesday, July 9, 2013, said the rupiah has weakened 0.3 percent since the beginning of this month, and eroded 3.3 percent since the beginning of this year.

"Despite the weakness, the rupiah decline is still reasonable compared to other regional currencies," He say.

Ibrahim said market players are not worried the rupiah is still weakening against the US dollar, because the weakening of the exchange rate also occurs in almost all countries. & Quot; Almost all global currencies are weakening," He Say.

However, according to him, the concerns become natural, if only the rupiah exchange rate fell. "If the rupiah itself is falling, we need to worry about the domestic market," He Say.

Previously, BI Governor, Agus Martowardojo, said the weakening of the rupiah is still better when compared with other regional countries. According to him, the depreciation of the rupiah is still better than Singapore's 3.8 percent and the Philippines 5.04 percent.

Some deeply depreciated countries are Japan and South Korea respectively 14 percent and 7 percent.

He explained that the movement of the rupiah is still influenced by the Fed's policy that will be temporarily halt quantitative easing, thereby impacting the strengthening of the US dollar. Strengthening that makes market participants hold US dollars, thus triggering depreciation of a number of currencies including rupiah.

Besides, he added, the crisis in the euro zone are still an important agenda, although the European Central Bank has given positive signals on quantitative easing.

Domestically, government bond yields with 10-year tenors also rose to 7.86 percent. "That means up 72.5 basis points since the beginning of this month and 266.5 points from the start of the year," He Say.

However, to overcome this, Bank Indonesia has committed to keeping the rupiah exchange rate below Rp10,000 per US dollar. This effort to keep the market does not panic.

The central bank previously said it had anticipated the weakening of the rupiah in order not to endanger importers and exporters. BI's move is seen from the foreign exchange reserves until the end of June 2013 which is trimmed to be US$98,1 miliar.

The foreign exchange reserves decreased by US $ 7 billion or around Rp70 trillion compared to the end of May 2013 of US $ 105.1 billion.

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