Central Bank Set To Protect Rupiah Maintaining Market Stability

Jakarta (Antara Bali) - Bank Indonesia pledges that it would continue policy to stabilize rupiah, which has tended to weaken lately.

"We would continue market monitoring  and would not hesitate to intervene when needed," Deputy Governor of the central bank Perry Warjiyo said here on Monday.

Perry said intervention by the central bank had resulted in a decline in the country's foreign exchange reserves.  

In June the country's foreign exchange reserves were valued at US$108 billion , down from US$110.8 billion a month earlier.

"Our foreign exchange reserves declined because of the spending in the market intervention," Perry said.

He said rupiah fall in value followed the global economic uncertainty  and the  possibility of the  Fed to raise its fund rate  and Greek financial crisis.

"Chinese slowdown also contributed to the share price fall in Indonesia," he said.

The national currency  has depreciated since early August when it sank in value to the level of 13,500 per US dollar from 13,3000 a month earlier. (WDY)