The central bank, Bank Indonesia (BI), conducted a stress test on the rupiah and its impact on the banking industry as it expects further rupiah correction against the US dollar. The stress test is needed to calm the market. BI revealed that the rupiah’s depreciation is mostly due to global factor. The rupiah strengthened slightly to Rp14,306 against the US dollar Friday last week, partly as the market responded positively the government’s policy packages.
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