"There is a supply of dollars but it is not enough. I, therefore, appeal to everyone holding US dollars, including exporters, to release them so that supply and demand can match each other," Bank Indonesia Governor Agus Mardowardojo said.Jakarta (ANTARA News) - Bank Indonesia Governor Agus Mardowardojo has urged people to release the US dollars they hold to prevent the rupiah from depreciating further.
"There is a supply of dollars but it is not enough. I, therefore, appeal to everyone holding US dollars, including exporters, to release them so that supply and demand can match each other," he said here on Friday.
Agus noted that the depreciation of the countrys currency in the past few months has been due to increasing demand for foreign currencies, along with worries about the possibility of the US Federal Reserve withdrawing its monetary stimulus soon.
"I, therefore, appeal to people to not buy US dollars if they do not require them because it increases pressure on the demand for US dollars," he added.
Agus said the central bank would continue to maintain sufficient liquidity to ensure that the financial markets did not panic at any potential internal or external upheaval towards the end of this year.
"There can be pressures towards the end of this year and we must be prepared so that the markets do not panic," he noted.
Agus declined to comment on whether efforts to maintain liquidity and the supply of US dollars would reduce Indonesias foreign exchange reserves, which were valued at US$97 billion at the end of November.
"I cannot comment on that, but I will say that foreign exchange reserves will be maintained at a healthy level to support the economy. Our level of foreign exchange reserves in relation to imports and debt repayment is still sound," he pointed out.
On Friday morning, the rupiah was trading at 11,905, up from 11,962 earlier, against the US dollar.(*)
Editor: Heru Purwanto
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