Indonesia central bank says SRBI auction will be held twice a week to attract more inflow

INDONESIA’S central bank will auction its rupiah securities, known as SRBI, twice a week instead of once a week in order to attract more inflows, its governor Perry Warjiyo said on Friday (May 3).

The measure, starting next week, is one of the policies being implemented to help stabilise the rupiah, Warjiyo said, adding this type of securities has helped to increase more capital inflows.

“This week, we have seen inflows in the form of SRBI, stock (market) and government bonds,” he told a press conference of the country’s Financial Stability Board.

As of Apr 23, total outstanding SRBI issuance was 393.66 trillion rupiah (S$33.2 billion), according to Bank Indonesia data.

The rupiah, which has fallen to four-year lows against the US dollar on the risk-off sentiment in markets, gained 0.62 per cent to 16,080 as of 0913 GMT on Friday, after the US Federal Reserve indicated it was keeping a dovish tilt. REUTERS