Indonesian central bank not to intervene in rupiah: governor

The Indonesian Central Bank would not make an intervention to stabilize the rupiah exchange rate against the U.S. dollar, except the volatility was large, the central bank governor said here Friday.

"The most important for the Bank of Indonesia is that the volatility is not too high, if it is, the bank will make some intervention steps," Governor Burhanuddin Abdullah told reporters here.

Similarly, Deputy Governor of the bank Aslim Tadjudin told reporters Indonesia had imposed flexible exchange rate since 1997, "so let the market determine the rate."

The deputy governor said Indonesia would rely more on domestic factors rather than external factors, such as the recent speech of U.S. central bank governor Ben Bernake about the possibility of interest rate hike, in determining a policy rate.

Still the speech would be used as a consideration in issuing the policy, he said.

The U.S. central bank governor in his speech suggested of possibility to increase 25 basis point of interest rate from 4.75 to 5 percent in the near future.

Indonesian rupiah reached 9,260 against the U.S. dollar on Friday.

Source: Xinhua