Bank Indonesia Records IDR5.2 Trillion Net Inflows Last Week

Jakarta, Indonesia (News Today) - Bank Indonesia said Wednesday it recorded IDR5.2 trillion ($577 million) in net inflows during the week ended Dec. 11 as foreign investors bought into rupiah assets on improving risk appetite globally.

“The European Central Bank's decision to hold interest rate at 1% was also one of the factors that kept foreign investors' interest in emerging market assets,“ the Indonesian central bank said.

It added that foreign ownership in government bonds during the week increased to 40% of the total outstanding amount from 30.6% in the previous week. Like other emerging markets, Indonesia is worried about the potential negative impact of short-term fund inflows on the economy should such funds reverse course.

Source : kompas

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