JAKARTA, NNC - Ministry of Finance explained the government issued a policy to prevent the rupiah exchange rate from continuously plummeting.
One of them, according to the Head of the Fiscal Policy Office (BKF) of Finance Ministry Suahasil Nazara, is that the government postponed issuance of bonds and government securities. Therefore, the move is waiting for the market to be stable.
"Yes, the foreign exchange [-denominated] bond issuance should seek the right time, the issuance of the foreign currency bond must seek the time when the market is stable. Certainly we will avoid issuing bonds. It seems there is none in the near future," he said at the Coordinating Ministry for Economic Affairs Building, Jakarta, Tuesday (5/8/2018).
In addition, he said because it is more likely for investors to wait and see during high volatility. If they wait and see, usually they are more cautious, if they are, usually it has impact later on the price. "So we did try to avoid that," he said.
Earlier, the rupiah exchange rate traded interbank in Jakarta on Tuesday morning depreciated by 35 points to IDR14,028 compared to the previous position of IDR13,993 per US dollar.
"The potential for increased inflation in the United States remains one of the factors driving the US dollar higher, as rising inflation will push the Fed rate up," said Binaartha Sekuritas analyst Reza Priyabada in Jakarta.