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BI Report: Low Current Account Deficit, Rupiah Strengthens

Jakarta, 14/03/2020 Ministry of Finance - Governor of Bank Indonesia (BI Governor) Perry Warjiyo stated, on the external side, the current account deficit is predicted to be low.

"Overall, the current account deficit in the first quarter of 2020 is projected to be 1.5% lower than GDP," he explained in a press conference on the results of the Monthly Board of Governors Meeting via YouTube streaming on Tuesday (14/04) in Jakarta.

The foreign capital flow is expected to gradually re-enter Indonesia in line with less panicking of global financial market and domestic economy improvement.

Overall, the outlook for Indonesia's balance of payments in 2020 remains well.

The position of foreign exchange reserves at the end of March 2020 was 121 billion USD or equivalent to financing 7.2 months of imports or 7 months of imports and  government foreign debt payments.

The exchange rate of the Rupiah as of April 13, 2020, rose 4.35%. The strengthening of the Rupiah in April was supported by increased inflows of foreign capital into the foreign capital financial market and the domestic financial market. It was also driven by foreign currency supply from domestic players. BI also predicts that the Rupiah will be in the range of Rp. 15,000 by the end of 2020. (nr / f)