20 Nov 2023 | News & Feature

Looking at the REER view mirror

  • The foreign capital inflow momentum that followed the BI and the Fed policy meeting in late October 2023 may seem to be weakening recently. However, the recovering IDR's value may reduce the urgency for BI to further adjust its policy in 2023.
  • The improvement in domestic FX liquidity conditions and Indonesia’s stable inflation outlook may continue to offer fundamental support for the Rupiah.
  • A more controlled weakening of the IDR's value should not unsettle BI, given the Rupiah's still relatively high real effective exchange rate (REER).