The continued weakening of the rupiah and foreign fund outflows have a broader impact on banking as BI carried out many foreign exchange swap auctions to increase dollar.Key summary points
- BI will hold three foreign exchange swap auctions to guarantee the adequacy of foreign exchange liquidity. It has increased the frequency of the auctions to twice per week in the last two weeks.
- Capital outflows in the government bond market during the second quarter will be the largest since 2009.
- The yield on 10-year government bonds rose to 7.4 percent, the highest in 14 months.