BI Appeal: Don't Get Lack of Rupiah Strengthening
KanalUtama . Bank Indonesia (BI) reminded all parties not to fall asleep with the strengthening of the rupiah exchange rate against the US dollar. As long as Indonesia is still experiencing a Current Account Deficit / CAD, the volatility of the rupiah exchange rate will still be vulnerable. A high current account deficit makes investors in global markets tend to react faster by withdrawing their capital in Indonesia if there is turmoil in the global market. "We should not be lulled by the exchange rate strengthening because we still have to solve the CAD problem, continue to encourage increased exports, tourism, and control unnecessary imports," said Bank Indonesia Senior Deputy Governor Mirza Adityaswara in Jakarta on Friday. Based on BI data, the current account deficit in the third quarter of 2018 reached 3.37 percent of GDP. The deficit was the highest during the administration of President Joko Widodo. Nevertheless, BI estimates that the current account deficit could fal...