JAKARTA :Indonesia’s central bank is committed to maintaining rupiah stability by using all available instruments “boldly”, including continued intervention in the offshore and onshore non-deliverable forward markets, its governor said on Friday.
The central bank is certain that currency stabilisation efforts will guide the rupiah to reflect fundamental value, Governor Perry Warjiyo said, adding that he urged market players to maintain a conducive climate.
“Bank Indonesia is boldly using all available instruments, both in the domestic market through spot instruments, domestic NDF and government bonds purchases in the secondary market, as well as in foreign markets in Asia, Europe and America on an ongoing basis through NDF interventions,” he said in a statement.
The rupiah weakened 0.3 per cent on early Friday after the central bank’s statement, trading at its weakest level since April. It has lost more than 3 per cent so far this year, making it one of the worst performing emerging Asian currencies.
On Thursday it extended its losses against the U.S. dollar for a sixth consecutive session, weakening as much as 16,762 a dollar.
A surprise Bank Indonesia’s interest rate cut last week was viewed widely by the market as bowing to President Prabowo Subianto’s push to fast-track growth, which seen could jeopardise the country’s fiscal credibility.
