Ilustrasi (CNN Indonesia/Hesti Rika)

Foreign Exchange Higher than Other Asian Countries, Capital Flows and Investments in Indonesia Seem Positive

Estella Claudia
Market & Investment
Indonesia Market
Jul 06, 2019
2267
Jakarta, Indonesia - Bank of Indonesia (BI) recorded Indonesia's foreign exchange reserves reached USD 123.8 in June 2019, or increased by around 2.91 percent compared to May 2019 that was around USD 120.3 billion, and it is well above the standard of international adequacy of around 3 months.

BI Governor Perry Warjiyo stated on Friday (7/5) that, the achievement of foreign exchange reserves is able to support the resilience of the external sector and maintain macroeconomic and financial system stability in Indonesia.

It is reported that, Indonesia's currency, Rupiah’s exchange rate was in the position of IDR 14,082 per US dollar (USD) in spot market trading on Friday (5/7) morning. This position rose 0.37 percent compared to the closing Thursday (4/7), which was IDR 14,134 per US dollar, making Rupiah in a good position this week.

However, almost all major Asian currencies are weakened this week. Malaysian ringgit fell 0.03 percent, the Hong Kong dollar weakened 0.06 percent, the Singapore dollar weakened 0.07 percent, and the Chinese yuan weakened 0.1 percent against the US Dollar.

According to Deddy Yusuf, Asia Tradepoint Futures analyst, the rupiah exchange rate today was lifted by domestic sentiment, especially foreign exchange reserves. The increase in foreign exchange reserves in June 2019 was also mainly influenced by oil and gas foreign exchange and other foreign exchange receipts as well as government foreign debt withdrawals.

According to Deddy, this gives a positive sentiment to the market as capital inflows and the domestic bond market are also attractive to the investors. Market participants also appreciate this data on foreign exchange reserves and have a huge expectation towards Indonesia and Rupiah to have better data compared to May and June 2019.

Source: https://www.cnnindonesia.com/ekonomi/20190705162500-78-409496/cadangan-devisa-ri-naik-rupiah-jadi-jawara-asia-sore-ini

Foreign , Exchange , Capital , Flows , Investments , indonesia