[ad_1]
Jakarta – The Principal Investigator of the Institute for the Development of the Economy and Finance (INDEF), Faisal Basri, said that the recent strengthening of the rupee had been triggered by the arrival of foreign funds . The inflow of foreign funds as the Bank of Indonesia (BI) raised the benchmark interest rate or the 7-day reverse repo rate of the BI.
For information, the IB Board of Governors meeting of November 14 and 15, 2018, raised the 25-day BI repo rate by 25 basis points to 6%.
"The government sold high interest rates for the money to come, which strengthened the rupee because the money came, not to trust Indonesia. ", explained at the Bidakara Hotel, Jakarta, Wednesday (28.11.2018).The increase in BI's benchmark interest rate has prompted foreign parties to return to invest in the Indonesian financial market. If interest rates rise, said Faisal, the capital will come automatically.
"Whether the aliens arrive or not, it depends on the amount of returns on investments that he gets in a country.If the government raises interest rates, the capital will come automatically," he said. .
Therefore, in the short term, rupiah may strengthen, but according to Faisal, she predicts that rupiah will weaken next year.
"In the long run, the relationship between the rupee and the Canadian dollar is very close, and earlier in the day, the annual exchange rate is now in the year, but the weakening is very polite, very little, because capital influx is more important.The question that will arise throughout the DAC will therefore be that the rupee is weakening, the problem is how much it is certain that the weakening is almost certain, "said Faisal (hns / hns)
Source link
