Enrico Tanuwidjaja, Economist at UOB Group, assessed the recently announced measures to provide stability to the Indonesian market and the rupiah. Key Quotes “Bank Indonesia (BI) and the Financial Services Authority (OJK) have announced measures to stabilize the Indonesian rupiah (following the stock market sell off) and to anticipate the downside risks to the domestic economy due to the COVID-19 outbreak”. Measures announced by the BI: “Lower the foreign exchange (FX) reserve requirements for commercial banks from 8% to 4%, effective 16th March 2020. This policy will increase FX liquidity in the banking industry by approx. USD3.2bn and simultaneously alleviate foreign exchange market pressures.” “Lower the rupiah reserve requirements by 50bps for banks financing export-import activity in coordination with the Government. Effective from 1st April 2020 for a period of nine months before a further review. This policy is expected to facilitate export-import activity through lower costs/fees.” “Intensify triple intervention policy to ensure rupiah exchange rates move in line with the currency’s fundamental value and market mechanisms. To that end, Bank Indonesia will optimize its intervention strategy in the domestic non-deliverable forward (DNDF) market, spot market and government bonds (SBN) market in order to minimize the risk of increasing rupiah exchange rate volatility.” “Expand the range of underlying transactions available to foreign investors in order to provide alternative hedging instruments against rupiah holdings.” “Reaffirm that global investors can utilize global and domestic custodian banks to conduct investment activity in Indonesia.” OJK measures: “Relaxation of credit asset quality assessment, up to IDR10bn, based on only one pillar: the accuracy of principal and / or interest payment, on loans which have been disburse to debtors in sectors affected by the COVID-19 outbreak.” “Relaxation of restructuring on loans which have been disburse to debtors in sectors affected by the COVID-19 outbreak.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Biden beats Sanders in Texas, risk positive FX Street 3 years Enrico Tanuwidjaja, Economist at UOB Group, assessed the recently announced measures to provide stability to the Indonesian market and the rupiah. Key Quotes “Bank Indonesia (BI) and the Financial Services Authority (OJK) have announced measures to stabilize the Indonesian rupiah (following the stock market sell off) and to anticipate the downside risks to the domestic economy due to the COVID-19 outbreak”. Measures announced by the BI: “Lower the foreign exchange (FX) reserve requirements for commercial banks from 8% to 4%, effective 16th March 2020. This policy will increase FX liquidity in the banking industry by approx. USD3.2bn and simultaneously alleviate… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.