Bank Indonesia (BI) has stated it will continue to closely monitor\nfinancial market dynamics and respond appropriately to safeguard the\nstability of the rupiah exchange rate amid heightened geopolitical\ntensions between Iran, the United States, and Israel. Erwin Gunawan\nHutapea, Head of BI\u2019s Monetary Management and Securities Assets\nDepartment, emphasised that the central bank will remain active in the\nmarket through intervention measures to ensure the rupiah\u2019s movement\nremains aligned with economic fundamentals.<\/p>\n
These interventions will be conducted through various instruments,\nincluding non-deliverable forward (NDF) transactions in overseas\nmarkets, as well as spot transactions and domestic non-deliverable\nforward (DNDF) transactions in the domestic market. BI will also\ncontinue to optimise policy to enhance the effectiveness of interest\nrate policy transmission.<\/p>\n
On Monday morning (2 March), the rupiah opened weaker, depreciating\n42 points or 0.25% to Rp16,829 per US dollar, compared with the previous\nclosing position of Rp16,787 per dollar.<\/p>\n
Currency analyst Lukman Leong from Doo Financial Futures projects\nthat the rupiah still faces potential pressure from the impact of the\nconflict between Iran and the United States. He estimates the rupiah\u2019s\nmovement will range between Rp16,750 and Rp16,900 per US dollar,\nconsistent with the tendency of global investors to avoid risky assets\nand redirect funds towards instruments perceived as safer.<\/p>\n
Tensions escalated after Saturday (28 February), when the United\nStates and Israel launched attacks against several targets in Iran,\nincluding Tehran. The attacks reportedly caused damage and civilian\ncasualties. Iran subsequently responded by launching missile strikes\nagainst Israeli territory and United States military facilities in the\nMiddle East region.<\/p>\n
Amid these conditions, Bank Indonesia has assured that it will\ncontinue to optimise monetary policy to safeguard the stability of the\ndomestic financial market. The stock market is expected to be shadowed\nby risk-off sentiment, particularly following the coordinated US-Israel\nattacks on Iran. The Jakarta Stock Exchange\u2019s Composite Index (IHSG)\nopened lower on Monday morning as Asian stock markets came under\npressure from the escalating Iran-US conflict.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bank-indonesia-assures-readiness-to-safeguard-rupiah-amid-iran-us-israel-conflict-1772427723", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }