Indonesia central bank to tighten rules again on dollar-buying to support rupiah
Indonesia's Central Bank Governor Perry Warjiyo arrives for a press conference along with his deputies, at Bank Indonesia's headquarters in Jakarta, Indonesia, January 15, 2025. REUTERS/Willy Kurniawan
JAKARTA, May 5 : Indonesia's central bank will lower the threshold for requiring underlying documents from those buying dollars again, in a move aimed at supporting the rupiah currency, Bank Indonesia Governor Perry Warjiyo said on Tuesday.
The rupiah earlier on Tuesday slid to a historic low of 17,445 per dollar despite Southeast Asia's largest economy reporting faster-than-expected economic growth in the first quarter.
Warjiyo said that the rupiah was undervalued given Indonesia's economic fundamentals and that Bank Indonesia would intervene in forex markets both on-shore and off-shore to support the currency.
BI had as of April lowered the threshold at which it requires dollar buyers to provide an underlying document explaining their need for the currency to $50,000 per month from the previous $100,000.
"We will further cap this ... So dollar buying above $25,000 will require underlying. This is what we are strengthening domestically," Warjiyo told reporters after a meeting with President Prabowo Subianto.
He did not say when the new threshold would take effect.
