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BI Estimates Rupiah`s Movement will not be Sharp

Jakarta (ANTARA News) – Bank Indonesia (BI) Governor Agus Martowardojo has estimated that the movement of the rupiah against the US dollar until the end of the year won’t be sharp.

“Earlier, there was high volatility mainly from overseas; there was pressure in Russia so there was capital outflow from there. Meeting speculations at the Fed will raise interest rates and oil prices. The third week in December, until the end of the year, will be quiet,” Bank Indonesia Governor Agus Martowardojo said here on Tuesday. However, the central bank governor has cautioned that a challenge will emerge in 2015. “The challenge will emerge in the first half of 2015,” he explained.

In a meeting with President Joko Widodo, Agus discussed and explained Bank Indonesias policy measures to tackle the fluctuation of the rupiah against the US dollar. “At the meeting with the President, we discussed the rupiahs fluctuation in response to recent turmoil in the world. We also discussed its impact on the general economy,” he remarked.

The Governor of Bank Indonesia emphasized that the central bank will supervise the market and make efforts to face different scenarios. “In general, BI will protect against volatility. BI will intervene if needed and will frame prudent policies and communicate with the government,” he affirmed.

The meeting, Agus stressed, was used to communicate to financial authorities in fiscal and monetary fields how to face several challenges in 2015. “The meeting discussed coordination and BI described various conditions and strategies, after which finance minister Bambang Brodjonegoro explained the fiscal condition of different sectors,” he added.

The meeting was held at the Presidential Palace. President Joko Widodo was accompanied by Vice-President Jusuf Kalla, Coordinating Minister for Economic Affairs Sofyan Djalil, State-Owned Enterprises Minister Rini Suwandi, Cabinet Secretary Andi Widjajanto, and Finance Minister Bambang Brodjonegoro.

Besides Bank Indonesia Governor Agus Martowardojo, Chairman of the Financial Services Authority Muliaman Hadad and other officials were also present at the meeting.

Source : www.antaranews.com, Wednesday 23 December 2014