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Jakarta Post

Bank Indonesia blames external factors for rupiah depreciation

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, March 8, 2019   /   06:31 pm
Bank Indonesia blames external factors for rupiah depreciation Bank Indonesia Governor Perry Warjiyo (Antara/Muhammad Adimaja)

Bank Indonesia (BI) Governor Perry Warjiyo has blamed external factors for the rupiah’s depreciation to Rp 14,315 per United States dollar on Friday afternoon, according to Bloomberg.

It indicates a further drop from Rp 14,143 per US dollar on Wednesday.

The external factors include the improvement in manufacturing data in the US and slower economic growth in Europe, Perry said, adding that the European Central Bank had also hinted at extending the monetary stimulus, which weakened the euro.

“This means the US dollar is strengthening against other world currencies,” Perry said in Jakarta on Friday as reported by kontan.co.id.

He added that the price increase of West Texas Intermediate (WTI) oil as a result of the US sanctions against Venezuela had further pressed the rupiah because oil exporters found difficulties in accessing oil tankers and crews.

“Other external factors include increasing geopolitical risks this week because of the failure of the US- North Korea summit to produce a positive result; uncertainty about the future of Brexit and other political events in the world,” Perry added.

Meanwhile, the BI chief claimed that domestic economic conditions were good – consumer confidence was high, foreign capital inflow was recorded at Rp 59.9 trillion and the trade balance was also expected to be positive in February. (bbn)