Government Measures to Mitigate Covid-19 Risk slide image

Government Measures to Mitigate Covid-19 Risk

9-Dec -Dec -Feb Exchange Rate In Line with Fundamentals Movement of Rupiah a.o. 16 Feb'21 Quarterly Average Monthly Average IDR/USD 15,711 14893 15,179 14,673 14,5 14,80 15,500 14,381 14,708 14254 14,22 14,232 14120 14,113 15,000 14339 14012 13,714 14,855 14,500 14,201 14605 14134 14061 14219 14,105 14,12 14,141 14,031 14,006 14,000 14,023 13925 13,500 13,992 13,000 17,000 16,500 16,000 Supported by Bank Indonesia's stabilisation measures and maintained foreign capital inflows to domestic financial markets, the rupiah continues to appreciate. As of 17th February 2021, the rupiah strengthened 0.22% on average, or by 0.07% (ptp) on the January 2021 level. A surge of foreign capital inflows to domestic financial markets in line with lower global financial market uncertainty and the positive perception of investors towards the promising domestic economic outlook have fed through to a stronger rupiah. Looking ahead, Bank Indonesia still expects the rupiah to regain lost value as the currency is fundamentally undervalued, supported by a narrow current account deficit, low and stable inflation, attractive domestic financial assets for investment, a lower risk premium in Indonesia as well as abundant global liquidity. In addition, Bank Indonesia will continue to strengthen rupiah exchange rate stabilisation policy in line with the currency's fundamental value and market mechanisms through effective monetary operations and by providing market liquidity. Rupiah Exchange Rate Volatilty Rupiah Exchange Rate Fared Relatively Well Compared to Peers JPY -13823 28.5 30 % KRW 1.01 -1.26 25.38 -0.54 EUR -0.82 BRL 1.02 -0.47 Feb 2021 vs Jan 2021 ■point-to-point Average 22.5 21.4 SGD 0.05 -0.29 MYR 0.09 18.02 -0.24 15.227.1 PHP -0.64 -0.03 THB -0.25 0.14 CNY -0.45 IDR 10.8717 -0.22- ao 17-Feb-21 7.1 INR 0.32 ZAR 3.06 2.33 TRY -2.00 -1.00 Source: Reuters, Bloomberg (calculated) 4.47 4.55 % 0.00 1.00 2.00 3.00 4.00 5.00 BRL ZAR TRY IDR KRW THB MYR INR SGD PHP 58 ■Dec-20 25 ■Jan-21 ■Feb-21 25 20 a.o 17 Feb 2021 20 12.8 15 12.1 6.5 3.7 8.85 7.61 8.1 10 6.4 6.4 5.801 5.38 5.425.7 2.65 4.62 2.9 3.268 3.5 5 2.0 1.5
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