Kemenkeu raises yield to draw capital and support rupiah
Government cash will remain at BI with higher remuneration to preserve money market and banking liquidity, officials said.
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Government cash will remain at BI with higher remuneration to preserve money market and banking liquidity, officials said.
Why it matters: The won and rupiah led regional losses as officials in South Korea, Indonesia, Japan, India and the Philippines stepped up defenses.
Higher import costs could lift prices of food, electronics and energy, while the government speeds domestic oil output plans.
Series: Indonesia · Rupiah Record Low · 2 chapters since Jun 3The weak currency is expected to strain import-dependent industries, from pharmaceuticals to automotive, by raising input costs.
Series: Indonesia · Rupiah Depreciation · 2 chapters since Jun 4The rupiah settled at Rp18.049 per U.S. dollar as markets tracked the APBN deficit and talk of an emergency BI meeting.
DPR passed a revision expanding Bank Indonesia's mandate and oversight, stoking market concerns over central bank independence.