Inflation Control and Financial Facilities Strategy slide image

Inflation Control and Financial Facilities Strategy

Exchange Rate In Line with Fundamentals IDR/US$ Movement of Rupiah ΛΟΝ-8 a.o17 Nov 20 14798 Quarterly Average - Monthly Average -IDR/USD 28-Nov 18-Dec 7-Jan 15,711 14,673 14893 I 15,179 14,530 17,000 16,500 16,000 15,500 15,000 14519 14,500 14,243 14,000 14,381 14,220 14,237 14254 14,113 14120 13,714 14,855 14669 1401 14219 14,105 14055 14,006 14134 14,141 16-Feb 27-Jan 8-Mar 28-Mar 17-Apr 7-May 14,031 27-May 16-Jun 6-Jul 26-Jul 15-Aug 4-Sep 24-Sep 14-Oct ΛΟΝ-Ε 23-Nov 13-Dec 2-Jan 22-Jan 11-Feb 2-Mar 22-Mar 11-Apr 1-May 21-May 10-Jun 30-Jun 20-Jul 9-Aug 29-Aug 18-Sep Rupiah Exchange Rate Fared Relatively Well Compared to Peers 13,500 13,000 Consistent with Bank Indonesia's stabilisation measures and maintained foreign capital inflows to domestic financial markets, the rupiah is appreciating. As of 18th November 2020, the rupiah had appreciated 3.94% (ptp) on the October 2020 level, thus extending the 1.74% (ptp) gain recorded one month earlier or 0.67% on the average September 2020 level. The value of the rupiah strengthened on increasing foreign capital inflows to domestic financial markets in line with lower global financial market uncertainty and positive investor perception regarding the promising domestic economic outlook. As of 18th November 2020, therefore, the rupiah had recorded 1.33% (ytd) depreciation compared with the level at the end of 2019. Looking ahead, Bank Indonesia still expects the rupiah to regain lost value as the currency is still 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. Bank Indonesia will continue to hone rupiah exchange rate stabilisation policy in line with the currency's fundamental value and market mechanisms through effective Runjab Exchange Rate and providing market liquidity. 31.4 ar 2019 YTD 2020 BRL TRY -24.31.89 -22.89 -17.77 -8.55 ZAR -12.98 24.8 INR -4.3091 - Average YTD 2020 --Average YTD 2019 THB -11797 1.33 IDR -2.99 19.4 18.1 17.0 17.5 16.0 0.07 MYR -1.75 SGD YTD 2020 vs 2019 0.39 -1.47 CNY ■point-to-point average 2.54 -0.65 4.50 JPY 1.72 15.56 10.4 7.6 10.10 7.0 6.45.5 6.2 5.4 4.7 4.74 KRW -2.02 4.98 PHP a.o 18 Nov 2020 5.65 EUR 1.18 ZAR BRL TRY IDR THB PHP INR MYR -30.0 -25.0 Source: Reuters, Bloomberg (calculated) -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 a.o November 18th 2020 68
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