EFFECTS OF FOREIGN EXCHANGE SUPPLY AND DEMAND DYNAMICS TO RUPIAH EXCHANGE RATE AND ECONOMIC PERFORMANCE

Authors

Sugeng Sugeng
M. Noor Nugroho
Ibrahim Ibrahim
Yanfitri Yanfitri

Document Type

Article

Abstract

This study examines the influence of forex demand and supply interaction on Rupiah's exchange rate. Estimation results show that the movement of rupiah is influenced by the forex supply and demand, where the foreign players are dominating. Furthermore, the demand and supply of foreign exchange is asymmetric.This paper also shows the impact of exchange rate movements on output is only in the short term with a more significant influence to the import, while the depreciation of Rupiah has a larger impact than its appreciation.Keywords:Foreign exchange, inflation, exchange rate.JEL Classification: E31, F31

Recommended Citation

Sugeng, Sugeng; Nugroho, M. Noor; Ibrahim, Ibrahim; and Yanfitri, Yanfitri (2010) "EFFECTS OF FOREIGN EXCHANGE SUPPLY AND DEMAND DYNAMICS TO RUPIAH EXCHANGE RATE AND ECONOMIC PERFORMANCE," Bulletin of Monetary Economics and Banking: Vol. 12: No. 3, Article 3.
DOI: https://doi.org/10.21098/bemp.v12i3.374
Available at: https://bulletin.bmeb-bi.org/bmeb/vol12/iss3/3

First Page

289

Last Page

328

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia