A new rule announced by Bank Indonesia on
Thursday prevents individuals from purchasing more than $100,000 worth of
foreign currency per month if they plan to deposit the funds without a specific
purpose.
The
move is the latest effort by the central bank to minimize speculation against
the rupiah.
In a
circular dated on Wednesday, Bank Indonesia omitted savings from a list of
underlying transactions that allow individuals to buy large amounts of foreign
currency.
“We
hope the revision can support a deepening of the domestic foreign-exchange
market while keeping the rupiah stable,” Hendar, the central bank’s monetary
director, said in the statement.
Hendar
said Bank Indonesia would only allow foreign-exchange purchases of more than
$100,000 for non-speculative activities with specific purposes.
For
Indonesians, foreign-exchange purchases may be used for the import of goods and
services; the payment of foreign-denominated debt; the purchase of offshore
assets; licensed money-changing or travel agency businesses; payment for
overseas services such as tuition, medical treatment or pilgrimage; and the
payment of wages owed to foreign consultants or employees.
The
allowed purposes for foreigners include capital repatriation, loan payments and
returns on investment such as capital gains, dividends, coupons and interest.
The
central bank said on March 8 that it would continue to intervene in the foreign
exchange and bond markets to stabilize the nation’s currency. The rupiah has
been under selling pressure in recent weeks as foreign investors continued to
dump their assets.
The
rupiah, which has weakened 1.2 percent against the dollar this year, closed
slightly stronger at Rp 9,173 against the dollar on Thursday from Rp 9,180 on
Wednesday, according to data from central bank.
The
proposed revision of the 2012 state budget assumes a rupiah that trades at
9,000 against the dollar, which is slightly weaker than the original forecast
of Rp 8,800 against the dollar.
Dion
Bisara
The
Jakarta Globe
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