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☆ Indonesia's central bank delivers surprise rate hike to support rupiah
▼ + stars: | 2024-04-24 | by ( ) www.cnbc.com time to read: +1 min

Indonesia's central bank delivered a surprise rate hike on Wednesday, stepping up efforts to support the rupiah currency which has fallen to four-year lows on rising risk aversion and a delay in the expected timing of any U.S. policy easing. Bank Indonesia (BI) raised the 7-day reverse repurchase rate, opens new tab by 25 basis points (bps) to 6.25%, its highest since the bank made the instrument its main policy rate in 2016. BI also increased the overnight deposit facility, opens new tab and lending facility rates, opens new tab by the same amount to 5.50% and 7.00%, respectively. "This hike in interest rates is to strengthen the stability of the rupiah exchange rate against the risk of a worsening global risks," BI Governor Perry Warjiyo told a briefing where the rate hike was announced. The rupiah extended gains after the announcement and was up 0.45% against the dollar at 0736 GMT at 16,140.

Persons: Perry Warjiyo Organizations: Bank Indonesia, Reuters, BI

☆ 2024 is the year of the rate cut pivot — here's when the world's central banks will budge
▼ + stars: | 2024-03-13 | by ( Lee Ying Shan | In Ying-Shan-Lee | ) www.cnbc.com time to read: +6 min

EIU also expects the Bank of Japan will exit its negative interest rate policy in the second quarter. Markets currently expect the Fed to start with a 25-basis-point rate cut in June. Euro zoneThe European Central Bank last week also held its policy rate at a record high of 4%, signaling that it won't cut rates before June. JPMorgan said in a research note that the Turkish central bank may cut its policy rate in November and December, keeping its year-end policy rate forecast of 45%. IndonesiaIndonesia's central bank kept its benchmark policy rate at 6% in its recent meeting.

Persons: EIU, Jerome Powell, LSEG, Nomura, Perry Warjiyo, CNBC's JP Ong, BOK, Goldman Sachs, Goohoon Kwon, Kwon Organizations: Getty, Economist Intelligence Unit, Bank of Japan, United, United States U.S, Federal, Fed, European Central Bank, ECB, Swiss National Bank, UBS, Bank of Canada, Bank of, JPMorgan, Reserve Bank of, ANZ, New Zealand Auckland Savings Bank, Bank, Bank Indonesia, BMI, Fitch Solutions, U.S, Oxford Economics, Macquarie Locations: Czech, China, Japan, United States, Switzerland Swiss, Bank of Canada, Turkey, Turkish, Reserve Bank of Australia, New, Indonesia, South Korea, Asia

☆ Take Five: An inflationary dilemma
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +5 min

The week ahead brings more evidence of how much progress is left for developed-economy policymakers, while in the emerging world, India is set to enter the bond-market big time and a raft of central banks wrestle with a dilemma. The personal consumption expenditures (PCE) price index rose 3.3% in the 12 months through July. Line chart with data from LSEG Datastream show the U.S.'s inflation on personal consumption expenditures (PCE), core PCE inflation and the federal funds target rate from 2019 to 2023. Reuters Graphics5\ASIA'S CURRENCY CONUNDRUMAsian central banks have a dilemma: how to handle weakening economic growth and peaking inflation, while arresting the slide in currencies to maintain stability in their financial systems. But much may rest on decisions of other central banks further afield, namely the Federal Reserve.

Persons: Lewis Krauskopf, Naomi Rovnick, Karin Strohecker, Amanda Cooper, Perry Warjiyo, Toby Chopra Organizations: Federal, Fed, European Central Bank, ECB, Reuters, CLUB India, JPMorgan, Russell, Bank of, Bank, Thailand, Reserve, Thomson Locations: India, Vidya Ranganathan, Singapore, New York, London, Washington, U.S, Saudi Arabia, Russia, Bank of Indonesia, Philippine

☆ The de-dollarization drive is spreading wider - Indonesia is the latest nation to join the anti-buck movement
▼ + stars: | 2023-09-20 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Indonesia appears to be the latest country to jump on the de-dollarization bandwagon. The island nation has launched a National Task Force to promote local-currency transactions. The move is expected to help make the rupiah more stable, and support local financial markets, Bank Indonesia said. The island nation has announced it's formed a National Task Force to widen the use of local currency transactions (LCT) with partner countries, according to Indonesia's central bank. While some experts perceive de-dollarization efforts as a threat to the greenback, others have dismissed the movement as a nothingburger.

Persons: it's, Perry Warjiyo, Vladimir Putin Organizations: Force, Bank, Service, Bank Indonesia Locations: Indonesia, Bank Indonesia, Wall, Silicon, China, Russia, India, dollarization, Beijing, New Delhi, Zimbabwe

☆ Vietnam joins Southeast Asian effort on cross-border payments
▼ + stars: | 2023-08-25 | by ( ) www.reuters.com time to read: +1 min

People go past the State Bank building, near the offices of Vietcombank and the Bank for Investment and Development of Vietnam, in central Hanoi, Vietnam November 23, 2017. REUTERS/Kham Acquire Licensing RightsJAKARTA, Aug 25 (Reuters) - Vietnam's central bank signed an agreement on Friday to be part of an initiative by five other Southeast Asian countries to establish a cross-border payments mechanisms between them. Vietnam will join Indonesia, Malaysia, Thailand, the Philippines and Singapore in working to connect each of their payment systems, including using the QR (quick response) code system for retail transactions. The agreement was made at a meeting of the 10-member Association of Southeast Asian Nations (ASEAN) finance ministers and central bank governors in Jakarta. Furthermore, Indonesia, Malaysia and Thailand have agreed to later facilitate cross-border transactions for financial assets like equities and government bonds in local currencies.

Persons: Perry Warjiyo, Stefanno Sulaiman, Martin Petty Organizations: Bank, Bank for Investment, Development, REUTERS, Rights, QR, Association of Southeast Asian Nations, ASEAN, Bank Indonesia, Thomson Locations: Vietcombank, Vietnam, Hanoi, Rights JAKARTA, Indonesia, Malaysia, Thailand, Philippines, Singapore, Jakarta

Bank Indonesia's logo is seen at its headquarters in Jakarta, Indonesia, January 17, 2019. Bank Indonesia (BI) plans to issue new rupiah-denominated securities, using its holdings of government bonds as the underlying asset, as a new monetary instrument aimed at attracting foreign portfolio capital flows, Governor Perry Warjiyo said. BI kept the benchmark 7-day reverse repurchase rate (IDCBRR=ECI) at 5.75% for its seventh straight monthly policy review, as widely expected by economists surveyed by Reuters. Guarding the rupiah "is our way to protect the domestic economy, inflation and growth from global spillovers," Warjiyo told reporters. Inflation slowed in July to 3.08%, roughly the midpoint of the central bank's 2% to 4% target range.

Persons: Willy Kurniawan, Perry Warjiyo, Warjiyo, Radhika Rao, Shivaan Tandon, Bank Danamon, Fransiska Nangoy, Bernadette Christina Munthe, Stefanno Sulaiman, Ananda Teresia, Gayatri Suroyo, Martin Petty, Kim Coghill, Kirsten Donovan Organizations: REUTERS, Bank Indonesia, BI, Reuters, Securities, U.S, Treasury, DBS Bank, Capital Economics, Bank, Thomson Locations: Jakarta, Indonesia, JAKARTA, Asia's, China

☆ Southeast Asian finance leaders discuss containing global risks
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

NUSA DUA, Indonesia, March 31 (Reuters) - Talks between Southeast Asian central bank governors and finance ministers entered their final day on Friday, with the leaders focused on strengthening the region's resilience against global risks. The gathering of finance leaders from the Association of Southeast Asian Nations (ASEAN) comes amid a backdrop of recent global banking turmoil after the collapse of Silicon Valley Bank and the bailout and takeover of Credit Suisse. Indonesia's central bank governor Perry Warjiyo called on the forum to boost the use of local currencies for settlements to reduce volatility and exposure to major currencies. They also discussed cryptocurrencies and central bank digital currencies, he added. Reporting by Stefanno Sulaiman; additional reporting by Ananda Teresia in Jakarta Editing by Ed Davies, Kanupriya KapoorOur Standards: The Thomson Reuters Trust Principles.

☆ Indonesia's inflation to stay above 5% in first half of 2023, central bank chief says
▼ + stars: | 2023-03-05 | by ( ) www.cnbc.com time to read: +1 min

The country's inflation has held above 5%, driven by high food prices. Indonesia's inflation will remain above 5% in the first half of 2023 and below 4% in the second half, mainly due to high food prices, central bank governor Perry Warjiyo said on Sunday, warning that the fight to control inflation must continue. "The game is not over, let us together anticipate inflation mainly food inflation," Perry said at an event on Makassar, in South Sulawesi, where he urged local authorities to work with the central government to reduce inflationary pressures. "We must control inflation because it relates to people's prosperity and welfare," he said. "Let's strengthen synergy amongst stakeholders to control inflation."

☆ G20 watchdog homes in on decentralised finance after FTX crash
▼ + stars: | 2023-02-16 | by ( Huw Jones | ) www.reuters.com time to read: +4 min

FSB member countries will now "proactively" analyse vulnerabilities from DeFi as part of regular monitoring of crypto markets, the report said. The collapse of FTX last November exposed vulnerabilities in intermediaries and DeFi, the report said. FSB DeFi Graphic 1SUPERVISION GAPSThe most worrying vulnerability in DeFi relates to "mismatches" in liquidity from different maturities in liabilities and assets, the report said. Until the sharp retreat in bitcoin prices and the FTX crash, regulators had largely focused on cryptoassets rather than related technology. FSB DeFi Graphic 2Reporting by Huw Jones Editing by Helen PopperOur Standards: The Thomson Reuters Trust Principles.

The MSCI Asia ex-Japan index rose on Wednesday for the first day in five, snapping its longest losing streak since October. On the data front South Korean producer price inflation, Thai trade balance and Taiwanese unemployment and industrial production figures are all scheduled for release. Bank Indonesia is expected to follow the U.S. Fed's example and slow the pace of interest rate hikes while stressing that the battle against inflation is far from over. chartLooking at the broader market picture, the U.S. yield curve continues to retrace its recent historic inversion, with spillovers from the Bank of Japan's yield curve control shock on Tuesday playing a part. The U.S. 2s/10s curve is on course to steepen for a third consecutive week, something not seen since October last year.

☆ Indonesia c.bank says digital rupiah currency can be used in metaverse
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +1 min

JAKARTA, Dec 5 (Reuters) - Indonesia's central bank (BI) governor Perry Warjiyo said on Monday its planned digital rupiah currency can be used in the future to buy products in the metaverse. BI launched the design for its digital rupiah last week, following many central banks around the world that are developing so-called central bank digital currencies (CBDCs). Perry, speaking at an event on the digital rupiah, added the currency will use a technology platform that will be compatible with other central banks' digital currencies. Perry said there will be an agreement among central banks on the exchange rate used for digital currencies and on its operational supervision, which includes cyber risk and capital flow. BI will roll out the digital rupiah in stages, starting from wholesale CBDC to development of the digital rupiah's business model for monetary operations and money market, and eventually a retail CBDC for everyday use.

☆ Indonesia's monetary policy will be front-loaded - central bank
▼ + stars: | 2022-11-30 | by ( Gayatri Suroyo | Stefanno Sulaiman | ) www.reuters.com time to read: +4 min

Governor of Bank Indonesia Perry Warjiyo speaks during the annual meeting of Indonesia's central bank with its financial stakeholders in Jakarta, Indonesia, November 30, 2022. REUTERS/Willy KurniawanBut availability of energy subsidies next year would let Bank Indonesia (BI) moderate rises in interest rates, Warjiyo said. “Interest rate policy will be front-loaded, pre-emptive and forward looking while being done in a measured way to reduce inflation expectations, which currently remain high,” he said at an annual gathering of bankers, government officials and the central bank. Policy synergy between the central bank and the government would be important to maintain next year in order to control prices, the governor said. They will be maintained at a slightly higher level of 211.98 trillion rupiah in 2023 budget.

☆ Indonesia central bank says monetary policy to remain pro-stability
▼ + stars: | 2022-11-30 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

Slideshow ( 4 images )JAKARTA (Reuters) - Indonesia’s central bank governor Perry Warjiyo said on Wednesday that monetary policy will remain pro-stability and that energy subsidies next year will allow Bank Indonesia (BI) to raise interest rates in a measured way. Warjiyo said inflation expectations remain high and reiterated that BI will steer core inflation toward its target range of 2%-4% in the first half of 2023. In 2024, he expected inflation to be within a range of 1.5%-3.5%. Warjiyo said other central bank tools will be geared toward maintaining economic growth, which is seen between 4.5%-5.3% next year and between 4.7%-5.5% in 2024. (This story has been corrected to fix core inflation target to 2-4%, not 2-3%, in paragraph 3)

☆ Indonesia c.bank launches white paper on planned digital currency
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

JAKARTA, Nov 30 (Reuters) - Indonesia's central bank on Wednesday unveiled plans for a digital rupiah currency that will use blockchain technology, as the country sees a boom in digital transactions. The digital rupiah will underline Bank Indonesia's (BI) role as the sole authority to issue legal tender, including a digital currency, Governor Perry Warjiyo said at an event where he also laid out the central bank's policy guidance for 2023. Indonesia currently bans the use of cryptocurrencies as a means of payment, but allows transactions of the digital assets in the commodity futures market for investment purposes. "Digital rupiah will be implemented in stages, starting from wholesale CBDC for issuance, elimination and transfer between banks," he said. Indonesia has seen double-digit growth in digital banking transactions in the past few years with transactions in 2022 set to grow 30% to 53,144 trillion rupiah ($3.38 trillion), according to BI's data.

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