Rupiah stable, needs no BI intervention: Soedradjat<\/p>\n
JAKARTA (JP): The Indonesian rupiah was stable against the
\nU.S. dollar and share prices on the Jakarta Stock Exchange (JSX)
\nincreased slightly yesterday after three jittery days of concern
\nover President Soeharto's health.<\/p>\n
Bank Indonesia Governor J. Soedradjad Djiwandono said
\nyesterday that the recent volatility of the rupiah has not yet
\nrequired intervention from the central bank.<\/p>\n
\"Bank Indonesia has not conducted any market intervention.
\nHowever, we continue to maintain vigilance,\" Soedradjad told
\njournalists after speaking at the golden anniversary of state-
\nowned Bank Negara Indonesia 1946.<\/p>\n
On the Jakarta spot market, the dollar closed at Rp
\n2,338.25\/Rp 2,339.00, compared with an opening of Rp 2,339.25\/Rp
\n2,340.25 yesterday. In Singapore, the dollar was quoted slightly
\nhigher against the rupiah, at Rp 2,338.50 from Rp 2,337.00 a day
\nearlier.<\/p>\n
Soedradjad noted that the recent movements of the greenback
\nagainst the rupiah have been within the range of the central
\nbank's intervention band.<\/p>\n
In a move to curb speculation on the money market, Bank
\nIndonesia last month widened its rupiah-dollar intervention band
\nto Rp 118 (5 percent) from Rp 66 (3 percent).<\/p>\n
Even when the greenback rallied at Rp 2,348 last Thursday, it
\nwas still below the middle rate of the central bank's
\nintervention band. The value of spot trading among local banks
\nwas very small, amounting to only US$60 million to $70 million,
\nfrom a total of $5 billion a day.<\/p>\n
\"That's peanuts,\" Soedradjad said, noting that the jitters did
\nnot force the central bank to touch its foreign exchange
\nreserves.<\/p>\n
Bank Indonesia, he added, keeps enough reserves to tackle a
\npossible rush for the dollar. It also holds stand-by loans
\ntotaling $2 billion for the matter. In addition, it has signed a
\nnumber of repurchase agreements with other central banks in the
\nregion, aimed at providing funds to defend regional currencies
\nfrom speculative attacks.<\/p>\n
Minister of Finance Mar'ie Muhammad said last week, when the
\nrupiah was under attack, that the government was ready to match
\nspeculators' attacks on the rupiah in a bid to stabilize the
\ncurrency.<\/p>\n
Soedradjad acknowledged yesterday that concerns on Soeharto's
\nhealth continued to daunt the market. He vowed to remain vigilant
\nover the possibility of a sudden attack on the rupiah.<\/p>\n
Soeharto is now at a renowned heart clinic in Bad Oeynhausen,
\nGermany, for medical treatment. The clinic's head doctor, Reiner
\nKoerfer, was reported by AFP as saying that Soeharto was \"in
\nbetter health than many people think.\"<\/p>\n
\"But I think investors' confidence has yet to completely
\nrecover,\" Rizal Prasetyo, an executive of PT Jardine Fleming
\nNusantara, told The Jakarta Post.<\/p>\n
\"It needs more time until everything is clearly disclosed,\" he
\nadded.<\/p>\n
Share prices on the JSX inched up 0.2 percent yesterday. The
\nJSX composite index actually managed to increase three points,
\nbut then closed only 1.06 points higher, at 574.89 points.<\/p>\n
Yesterday's total transactions reached 101 million shares,
\nworth Rp 253 billion.<\/p>\n
Commenting on investors' sentiment, Nurkhamid Akhmad, a senior
\ntrader on the JSX, said: \"The easing concern on Soeharto's health
\nwas good news for PT Cahaya Kalbar, which is listed today. It
\nmight have been different if it was listed last Friday. (alo\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-stable-needs-no-bi-intervention-soedradjat-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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