It will aggressively intervene in the onshore markets too when they reopen on Tuesday
[JAKARTA] Bank Indonesia intervened in the offshore rupiah market ahead of what could be a turbulent reopening for the currency on Tuesday (Apr 8) after over a week-long holiday.
The central bank has intervened in the offshore non-deliverable forwards market to stabilise the rupiah, it said in a statement on Monday (Apr 7), adding it will aggressively intervene in the onshore markets too when they reopen on Tuesday.
Onshore Indonesian markets are closed for holidays since March 28. The week saw global markets plunging as US announced tariffs on all countries.
Offshore dollar-rupiah one-month NDFs rose 0.5 per cent on Monday to 17,101, after having gained 2.5 per cent last week, the biggest weekly gain since the week ending Oct 4. The onshore rupiah closed at 16,560 against the dollar on March 27.
Meanwhile, the Indonesian stock exchange reiterated in a statement that the market is shut on Monday for the Eid al-Fitr holiday break, following Google screenshots on social media showing the benchmark stock index falling. The IDX said it’s conducting testing ahead of the market reopening on Tuesday.
The government will not retaliate against the US despite its plans to impose a 32 per cent tariff on Indonesian goods, the Coordinating Ministry for Economic Affairs said in a statement late Sunday.
The rupiah fell 2.8 per cent against the dollar in the first quarter, the worst performer in Asia amid rising concerns over President Prabowo Subianto’s policies and the impact on fiscal consolidation measures. BLOOMBERG
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