BI's about-face on rupiah is challenged by lack of reserves
Jakarta
INDONESIA'S foreign-exchange reserves, the smallest in South-east Asia relative to economic output, are coming under scrutiny as the central bank starts to combat the rupiah's slide to a 16-year low.
"Indonesia is not in a comfortable range when it comes to reserves," Michael Every, head of financial markets research at Rabobank International in Hong Kong, said in a March 19 phone interview. "It makes more sense that they would like to build reserves and see the trade-weighted rupiah continue to weaken."
The central bank left interest rates unchanged at a policy review last week and pledged to "beef up measures" to stabilise the rupiah, including by intervening in the market. That marked a change from the February meeting when borrowing costs wer…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Indonesia’s central bank surprises with ‘pre-emptive’ rate hike to cushion falling rupiah
South Korea’s economic growth beats forecast as exports rise
China 2024 growth outlook raised to 4.8%, deflation risk lingers
Luxury sector outlook clouded by China’s slow recovery
‘We aren’t going anywhere’: TikTok CEO expects to defeat US restrictions
TikTok artists and advertisers to stay with app until ‘door slams shut’