The yield is reflected through Uncovered Interest Parity
Investors are still eyeing rupiah investment products following the high yield they may gain from the outcomes compared to Malaysia or Philippines.
In a report drawn up by Bank Indonesia, the yield is reflected through Uncovered Interest Parity. In fact, rupiah is recorded at a level of more than 5 percent, Malaysia 3 percent, Philippines 1 pecent while Korea 2 percent.
In a report drawn up by Bank Indonesia, the yield is reflected through Uncovered Interest Parity. In fact, rupiah is recorded at a level of more than 5 percent, Malaysia 3 percent, Philippines 1 pecent while Korea 2 percent.
The said investment in rupiah includes capital investment in various instruments such as state bonds and Bank Indonesia Certificate (SBI). By late December 2010, foreign investment in the SBI was worth Rp 53 trillion while state bonds reached almost Rp 195 trillion.
The titanic capital inflow through Indonesia as well as improved Indonesia's risk perception have resulted in the increase in Indonesia's foreign exchange reserves.
The average rupiah exchange rate along December 2010 was at Rp 9,024 against US dollar, 0.9 percent weaker than the previous month.
