An employee transports rupiah notes at a national bank outlet in Jakarta. Indonesia has introduced a new rule to help stabilise the rupiah that is pressured by growing current account deficit. — Reuters
JAKARTA: Indonesia's central bank said its new rule shortening hedging duration to a minimum of one week is now effective, and expects it to help stabilise the rupiah that is pressured by a growing current account deficit.
Foreign investors could previously only hedge forward transactions for a minimum of three months, which contributed to recent rupiah volatility as they shifted to safer instruments amid an uncertain global economy.
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