BI Guards Rupiah Stability to Mitigate Impact of SVB Crash

By Editorial Team 17/03/2023
Dollar Indonesia
Summary

Bank Indonesia (BI) assesses that the case closing of three banks in developed countries will increase uncertainty in global financial markets. Previously, Silicon Valley Bank (SVB) in the United States (US) had a failure because customers withdrew massive funds in just 48 hours.

This crisis also shook the position of Signature Bank and was followed by Silvergate Bank. These three banks are known as banks for startups and crypto.

BI Governor Perry Warjiyo revealed this uncertainty would hamper foreign capital inflows to developing countries. "This will increase the pressure of weakening exchange rates in various countries," Perry said at a press conference in Jakarta on Thursday.

It is believed that Indonesia will also be affected by this situation. Hence, BI must be ready to minimize the impact. To reduce uncertainty in international financial markets, Perry stated that BI would strengthen measures to stabilize the rupiah exchange rate.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

Sign up
Log in
What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.