Indonesia Must Stay Vigilant as DXY Strengthens Over World Currencies, BI Says

TEMPO.CO, Jakarta - Senior Deputy Governor of Bank Indonesia (BI), Destry Damayanti, said Indonesia must be wary of the strengthening US dollar against other currencies, including the rupiah or what is known as DXY (US Dollar Index).

"DXY continues to strengthen and on the other hand causes the Asian currencies, including the rupiah, to experience pressure. This is happening in almost all world currencies amidst the high for longer interest rates,” she said during her presentation while taking the fit and proper test as the candidate for Senior Deputy Governor of BI for the 2024-2029 period.

Based on monitoring via the RTI application at 01:00 p.m., the rupiah exchange rate against the US dollar weakened by 0.12 percent at Rp16,221.

"Indonesia’s year-to-date (y-t-d) weakened by up to 3.86 percent. However, regional comparison shows that the rupiah’s depreciation is much more manageable compared to other countries," she said.

She then gave the example of the Korean won which weakened by 5.43 percent, the Thai baht weakened by 6.08 percent, and the Turkish lira weakened by 9.19 percent.

"Even though our economic achievements are relatively solid, we must not be complacent. The challenges of volatility, uncertainty, complexity, and ambiguity (VUCA) still exist, both globally and domestically," she said.

Destry said these challenges are the main considerations for Bank Indonesia in formulating its policies. Moreover,  BI has three main objectives based on the Law on the Development and Strengthening of the Financial Sector,

"Maintaining the stability of the rupiah exchange rate, maintaining the stability of the payment system, and helping to maintain the stability of the financial system to support sustainable economic growth."

ANNISA FEBIOLA

Editor’s Choice: Sixth Phase of Groundbreaking of New Capital Nusantara Expected on June 4 and 5

Click here to get the latest news updates from Tempo on Google News