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SRBI Issuance:  a Key Policy Tool.

INDONESIA CENTRAL BANK
  • The Central Bank of Indonesia left rates on hold overnight as expected.
  • BI Governor noted the importance of the SRBI issuance which has grown this year.
  • SRBI is short-dated issuance aimed at luring inflows to support liquidity and the currency.
  • The SRBI issuance schedule is altered regularly depending on the liquidity in the system at any point in time and the volatility profile of markets.
  • The use of SRBI issuance has enhanced the stability of the currency, a policy priority.
  • Since the market disruption earlier this month, the BI has reduced the SRBI issuance to weekly, a sign of ample liquidity in the system and the strength of the rupiah.

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