Follow Us:
Tuesday, January 21, 2020

Indonesian president says rapidly rising rupiah may upset exporters

The rupiah has rallied in recent weeks, up about 1.6% so far this month, leading the gains among emerging Asia currencies.

By: Reuters | Jakarta | Published: January 16, 2020 11:35:30 am
Indonesia President Joko Widodo, president of joko widodo, joko widodo, joko widodo news, indonesia news, world news, indian express news “Our currency is strengthening, but be careful if the strengthening happens too rapidly,” said Indonesia’s President Joko Widodo. (File)

Indonesia’s President Joko Widodo said on Thursday exporters may be upset if the rupiah exchange rate strengthens too quickly against the dollar , as the currency trades near a two-year high.

“Our currency is strengthening, but be careful if the strengthening happens too rapidly,” he said at a finance industry event in Jakarta. “Exporters may not be happy about a stronger rupiah because our competitiveness may decline.”
The rupiah has rallied in recent weeks, up about 1.6% so far this month, leading the gains among emerging Asia currencies.

Speaking to Reuters on the sidelines of the event, Dody Budi Waluyo, deputy governor at Bank Indonesia (BI), said that a stronger rupiah will not automatically reduce competitiveness of Indonesian exports, especially when other currencies in the region have also strengthened against the dollar.

“Stronger rupiah would help reduce costs and it would also be more efficient for exporters who have debt in foreign exchange,” he said.

Waluyo added the currency strength reflects improving global fundamentals and that the central bank isn’t seeing a need to intervene in the market.

For all the latest World News, download Indian Express App

0 Comment(s) *
* The moderation of comments is automated and not cleared manually by indianexpress.com.
Advertisement
Advertisement
Advertisement
Advertisement