Indonesia central bank intervenes in FX, bond markets amid capital outflows

25-Feb-2020 Intellasia | Reuters | 6:02 AM Print This Post

Indonesia’s central bank has intervened in the spot currency, domestic nondeliverable forward and bond markets amid outflows related to fears of the spread of COVID-19 in South Korea, an official told Reuters on Monday.

“There are outflows in the bond (market) and banks are short covering,” Nanang Hendarsah, Bank Indonesia’s head of monetary management said.

“Because of the jump in virus cases in Korea during the weekend. It’s to do with flight to quality away from EM assets,” he added, referring to emerging markets.

The rupiah had weakened by as much as 0.9 percent as of 0308 GMT Monday to trade at 13,890 per dollar, the lowest since January 8.

https://www.nasdaq.com/articles/indonesia-central bank-intervenes-in-fx-bond-markets-amid-capital-outflows-2020-02-23

 


Category: Indonesia

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