06 May 2024 | News & Feature

TFP W19: Not Much Support in the Old Reliables

  • The loosening global financial condition translates positively to the Rupiah’s value, but the recent recovery may mask the sustained sell-off pressure in the domestic financial market.
  • The recovering terms of trade may help Bank Indonesia to expand its market interventions, although the policy could be increasingly costly given the Rupiah’s seemingly worsening fundamentals.
  • Higher domestic demand for hard currencies may further complicate BI’s efforts to expand its presence in the FX market.