Indonesia tightens FX purchase rules after rupiah hits record low
Updated
Updated · Bloomberg · May 6
Indonesia tightens FX purchase rules after rupiah hits record low
6 articles · Updated · Bloomberg · May 6
Bank Indonesia Governor Perry Warjiyo said in Jakarta that undocumented cash foreign-currency purchases will be capped at $25,000, down from $50,000.
The move is aimed at defending the rupiah and reinforcing the central bank's broader currency-stabilisation efforts after the unit fell to an all-time low against the dollar.
The tighter limit targets cash dollar demand without supporting documents, signalling authorities' concern over pressure on the rupiah as global dollar strength strains emerging-market currencies.
By tightening currency rules to fight a global storm, is Indonesia protecting its economy or scaring away the foreign investment it desperately needs?
Can Indonesia’s central bank win its war on currency depreciation without sacrificing the nation's economic growth and stability?
As imported goods prices soar by 45%, will new currency rules provide relief or just more hurdles for Indonesian businesses and families?