Bank Indonesia intervenes in the market to support the rupiah

Golden Ten Data reported on March 4 that Bank Indonesia has intervened in the market to support the rupiah, following pressure on emerging markets triggered by the Iran conflict. Destry Damayanti, Senior Deputy Governor of Bank Indonesia, stated in a Wednesday announcement: "Bank Indonesia will continue to be present in the market to maintain exchange rate stability and prevent the impact of escalating Middle East conflicts." She said the central bank will continue to implement "firm and sustained intervention" in the offshore non-deliverable forward market, as well as the onshore non-deliverable forward, spot, and bond markets. The Iran conflict is weakening investors' appetite for risk assets, prompting the central banks of India and Turkey to also intervene in the market on Monday to defend their respective currencies. As Indonesia relies on imports for about half of its oil demand, rising oil prices are intensifying concerns about inflation and widening trade deficits.