In recent days, the domestic financial market has been rumored to be experiencing a shortage of foreign exchange liquidity, especially the US Dollar. In response, Bank Indonesia (BI) sees that domestic foreign exchange (forex) liquidity conditions are still safe. This means that supply and demand are still well maintained.
Head of the Department of Monetary Management of Bank Indonesia, Edi Susianto, quoted Tuesday (1/11/2022), said, “So far, the market mechanism in the forex market, I see it is still okay.”
Exporters also continue to contribute to the supply of foreign exchange, particularly the US dollar.
“Forex supply is still happening, so we see it is still okay. There is nothing from our data, there is nothing so far that there are concerns regarding supply-demand in our forex market. Anyway, it is still at a manageable level,” he explained.
From the beginning of the year until the end of last week, BI noted that foreigners were in an outflow position or net selling of Rp. 177.08 trillion in the SBN market. Although a week earlier, foreigners slowly began to enter.
“This is because the sentiment is the strengthening of the US Dollar. Investors are looking for a haven in the US Dollar Cash Market. That’s what happened,” he said.
The phenomenon of the dollar drought is reflected in the rapid growth of foreign currency credit, but it is not accompanied by the collection of foreign currency third-party funds (DPK).
Bank Indonesia (BI) noted that in September 2022, credit growth grew in double digits or by 18.1%, while growth in foreign currency deposits only reached 8.4%.
The situation is quite a shake of the head. This is because the trade balance surplus from January to September 2022 was recorded at US$ 39.87 billion or grew by 58.83%.
The chief economist of Bahana Sekuritas, Satria Sambijantoro, saw that much of Indonesia’s export earnings were deposited in Singaporean banks amidst the phenomenon of a barrage of surpluses.
Singapore whose interest rate is relatively more attractive. The average foreign exchange deposit interest rate in Singapore is 3%. Well below the domestic average.
As a result, exporters prefer to put their money abroad and not exchange it for the rupiah, which is experiencing a downward trend.
As previously reported, in the domestic financial market, Indonesia is reported to be experiencing a shortage of foreign exchange (forex) liquidity, especially the United States (US) dollar. The Minister of Finance, Sri Mulyani said that at that time his party immediately coordinated with Bank Indonesia (BI).
“We and BI will look at the supply of currency, especially hard currency, from us and BI for collaborating,” Sri Mulyani said in her office recently.