BI Guards Rupiah Stability to Mitigate Impact of SVB Crash

By Editorial Team 17/03/2023
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.

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