Reflecting
current economic conditions, Bank Indonesia regularly publishes rupiah
stability indicators, especially since the COVID-19 outbreak. The main
indicators in question are the exchange rate and inflation, as follows:
A. Exchange
Rate Developments 30th March - 2nd April 2020
End
of Thursday, 2nd April 2020:
1. The
rupiah depreciated to close at a level of Rp16,470.
2. 10-year
benchmark SBN yield increased to 8.00%.
3. DXY
(Dollar Index) strengthened to a level of 100.18.
4. 10-Year
US Treasury Note yield decreased to a level of 0.583%.
Friday
Morning, 20th March 2020
1. The
rupiah opened stronger at a level of Rp16,450.
2. 10-year
benchmark SBN yield increased to 8.08%.
Foreign
Capital Flows (1st Week of April 2020)
1. 5-year
Indonesia Currency Default Swap (CDS) Premium increased to 235.64bps as of 2nd
April 2020 from 200.11bps on 27th March 2020, stoked by concerns of
a global economic recession as cases of COVID-19 continue to rise.
2. Based
on transaction data from 30th March - 2nd April 2020, non-residents
booked a net buy in the domestic financial markets totalling Rp3.28 trillion,
with a net buy recorded in the SBN market of Rp4.09 trillion and a net sell the
stock market of Rp0.82 trillion.
3. Based
on settlement data from 30th March - 2nd April 2020, non-residents
booked a net buy in the domestic financial markets totalling Rp0.77
trillion. In 2020 (ytd), non-residents have
recorded a net sell in the domestic financial markets totalling Rp143.99
trillion.
B. Inflation
in 2020
Controlled and on Target
1. Based
on the Price Monitoring Survey, inflation stood at 0.20% (mtm) in the first
week of April 2020, increasing on the previous period and bringing the rate
this calendar year to 0.96% (ytd) and 2.80% (yoy) annually.
2.
The main contributors to
inflation in the reporting period were shallots (0.08%), gold jewellery
(0.07%), oranges (0.05%), granulated sugar (0.02%), raw tofu, water spinach,
tempeh, leaf amaranth, rice, bird’s eye chilli, bottled water and filtered
clove cigarettes, which each contributed 0.01% (mtm). In contrast, several major commodities
experienced price corrections, namely red chili (-0.09%), purebred chicken meat
(-0.03%) and airfares (-0.01%). Bank Indonesia will continue to coordinate with
the Government and OJK to carefully monitor the dynamics of COVID-19
transmission and the economic impact on Indonesia over time, including the coordinated
policy measures required to maintain macroeconomic and financial system
stability, while supporting solid and resilient national economic growth.
Editor's
Notes:
1. DXY
or Dollar Index is an index of the value of the United States dollar relative
to a basket of six other global currencies (EUR, JPY, GBP, CAD, SEK, CHF).
2. UST
or US Treasury Notes are government debt securities issued by the United States
Department of the Treasury with tenors of 1-10 years.
3. Currency
Default Swap (CDS) is an indicator of money market vulnerabilities showing
rupiah exchange rate movements against other currencies.
