- BI’s FX reserves decreased by USD 0.3 Bn to USD 149.9 Bn in September, driven by the decline in bank’s FX placement on Bank Indonesia, which might have reflected increased FX demand by the private sector amid strong Rupiah.
- Rupiah has normalized recently from its overvaluation, hastened by geopolitical escalation in the Middle East, better data in the US, and a lack of stable forward guidance from the Fed.
- BI has slowed down its SRBI issuance (IDR 58.0 Tn) to the point it barely kept up with maturity (51.2 Tn), but an outright exit from SRBI could be trickier amid heightened global uncertainty.
