BI to improve ruling on rupiah transaction<\/p>\n
JAKARTA (JP): Bank Indonesia would improve the ruling on
\nrupiah transactions by non-residents in a bid to help stabilize
\nthe ailing local unit, Bank Indonesia deputy governor Miranda
\nGoeltom said in a press statement on Friday.<\/p>\n
Miranda said that the new ruling might include cutting down
\nthe source of rupiah funds for non-residents which had the
\npotential to be used for currency speculation.<\/p>\n
\"The source of rupiah (for overseas banks) has always been the
\nlocal banks through various methods including loans, interoffice
\nfund placements and derivative transactions,\" Miranda said.<\/p>\n
The statement was issued following a meeting of Bank Indonesia
\nwith bankers to gather feedback over the plan to improve the
\nrulings.<\/p>\n
She added that the central bank would also \"clarify\" the
\nexisting rulings on foreign exchange transactions to avoid
\ndifferent interpretations.<\/p>\n
She did not provide details.<\/p>\n
Miranda said that it was the responsibility of Bank Indonesia
\nto maintain the stability of the rupiah, and the central bank
\nwould continue to improve existing rulings on forex transactions
\nif necessary, as long as they were being conducted within the
\n\"corridor free capital regime and floating forex system.\"<\/p>\n
The rupiah has been under pressure over the past several
\nmonths, falling to more than Rp 9,500 per U.S. dollar earlier
\nthis month, which is a drop of more than 25 percent from the
\nlevel at the start of the year.<\/p>\n
Currency speculation has been blamed for the drop in the
\nrupiah.<\/p>\n
The rupiah ended lower at Rp 9,365 per U.S. dollar late on
\nFriday compared to Rp 9,270 on Thursday.<\/p>\n
Dealers said that some banks were seen active purchasing
\ndollars in the last transaction day of the year 2000.<\/p>\n
Interbank currency trading will be closed for the whole of
\nnext week and will reopen only on Jan. 2.<\/p>\n
Dealers said that the currency market did not react to the
\nmeeting between bankers and the central bank on Friday over plans
\nto improve the ruling on rupiah transactions.<\/p>\n
Many believed that the central bank would not take drastic
\nmeasures, but would only plug loopholes in the existing ruling.<\/p>\n
The central bank has recently installed its officers in
\ncertain banks, including foreign banks operating in Jakarta, to
\nensure that they do not violate Bank Indonesia's forex
\ntransaction ruling and help curb speculative activity. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bi-to-improve-ruling-on-rupiah-transaction-1447893297",
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