Rupiah stability important: Central bank

Deputy Governor of Bank Indonesia (BI) Mirza Adityaswara stressed the importance of maintaining rupiah stability for the economy.

"What is important for us, especially for the business sector, is rupiah is stable against the US dollar - not too strong and not too weak. Weak rupiah would not be good for those having debt in U.S. dollar and importers, although it would boost exports. Too strong rupiah would encourage imports," Mirza said here on Friday.

Too strong rupiah would not help in encouraging production as the business sector would choose to import goods from other countries, he said.

"What is the best position of rupiah? One that reflects economic equilibrium and economic fundamental, supports trade balance with a surplus and keeps inflation low," he said, adding, "Strong rupiah is not necessarily good for the economy."

On Friday, based on data at the central bank, the rupiah value against the US dollar is 13,284 per dolar, strengthening from the level of 13,345 per dollar.

The Central Bank said the rupiah strengthening over the past week was on U.S. economy failing to grow as expected.

The Fed has twice raised its fund rate this year . It is not expected to raise its fund rate until November, In December, 2017, however, it is expected to raise its fund rate by 25 basis points.

Source: ANTARA