Purbaya and Team Bring New Warning: Global Money Market Volatility Rises

The Financial System Stability Committee (KSSK) assesses that global financial market volatility will remain quite high through the second quarter of 2026. This is marked by a strong flight to safety, or a shift of capital into safe-haven assets. The flight to safety by investors is reflected in the strengthening of the United States dollar. This condition has also triggered a rise in bond yields and put pressure on capital flows in developing countries. "In the financial markets, high volatility and a strengthening flight to safety are reflected in the rising US dollar, bond yields, and capital pressures in developing countries," said Purbaya Yudhi Sadewa, Minister of Finance, during a KSSK press conference on Monday. Purbaya, who serves as Chair of the KSSK, stated that the global economy faced intensifying challenges in the second quarter, including geopolitical conditions in the Middle East affecting energy supplies, prices, and supply chains. "These conditions are driving up inflation and monetary policy interest rates," he explained.