TEMPO.CO, Jakarta - Bank Indonesia Governor Agus Martowardojo said that the Great Britain's decision to remain or leave the European Union (Brexit) does not have a significant effect towards the Rupiah exchange rate. Agus said that during the opening of today's trading session, Rupiah was traded at a level of Rp 13,286 per US Dollar.
"Currently, Rupiah has entered its risk-on period, which means [Rupiah is considered as a] flight-to-quality instruments, Rupiah has the tendency to strengthen," Agus said on Tuesday, June 21, 2016.
Agus asserted that the current condition in the investment market is better compared to May 2016, when investors are making speculations on the Federal Reserve's decision to increase its interest rate.
In addition to the strengthening of Rupiah, Agus said that credit default swap ratio had also experienced improvements, and is expected to provide a positive impact on monetary stability and Indonesian economic growth.
GHOIDA RAHMAH