Monitoring economic conditions in Indonesia, particularly
in terms of the COVID-19 impact, Bank Indonesia regularly publishes rupiah
stability indicators, including the exchange rate and inflation, as follows:
A. Exchange
Rate Developments 10-13th August 2020
End of Thursday, 13th August
2020
1. The
rupiah closed at a (bid) level of Rp14,700 per US dollar.
2. Benchmark
10-year SBN yield decreased to 6.75%.
3. DXY
weakened to a level of 93.34.
4. US
Treasury (UST) Note
yield increased to a level of 0.721%.
Friday
Morning, 14th August 2020
1. The
rupiah opened at a (bid) level of Rp14,700 per US dollar.
2. Benchmark
10-year SBN yield stable at 6.75%.
Foreign
Capital Flows (Second Week of August 2020)
1. Indonesia
5-year credit default swap (CDS)
premium decreased to 101.83bps as of 13th August 2020 from 107.28bps
on 7th August 2020.
2. Based
on transaction data from 10-13th August 2020, non-resident investors
booked a net sell totalling Rp4.74 trillion in the domestic financial markets,
with a net sell recorded in the SBN market of Rp3.98 trillion and a net sell in
the stock market of Rp0.76 trillion.
3. Based
on settlement data in 2020 (ytd), non-resident investors have booked a net sell
totalling Rp148.19 trillion in the domestic financial markets.
B. Inflation
Remains Low and Under Control
1. Based
on the latest Price Monitoring Survey as of the second week of August 2020,
inflation in August 2020 is predicted at 0.01% (mtm). Therefore, inflation in August
2020 for the calendar year is estimated at 0.99% (ytd) or 1.39% (yoy) annually.
2. The
main contributors to inflation in the reporting period were gold jewellery (0.11%
mtm), red chillies (0.02% mtm) as well as cooking oil and mackerel (0.01% mtm).
Meanwhile, several commodities experienced deflationary pressures, namely
purebred chicken meat (-0.15% mtm), shallots (-0.06% mtm) as well as purebred
chicken eggs, oranges and tomatoes (-0.02 % mtm).
Bank Indonesia will continue to strengthen coordination with
the government and other relevant authorities to carefully monitor COVID-19
transmission dynamics and the economic impact over time, while taking the
coordinated policy measures required to maintain macroeconomic and financial
system stability as well as support solid and resilient national economic
growth.
DXY or the
US Dollar Index is an index of the value of the United States dollar relative
to a basket of six foreign currencies, namely EUR, JPY, GBP, CAD, SEK
and CHF.
United
States Treasury Notes are government debt instruments issued by the United States
Department of the Treasury with tenors of 1-10 years.
CDS or
credit default swaps are an indicator often used as a proxy of country risk.
