YOGYA, KRJOGJA.com - The rupiah exchange rate against the US dollar (US) continues to weaken and its value almost penetrate the number Rp 14,000. There needs to be diversification of export and import payments by way of bilateral agreements to reduce dependence on the US dollar and reduce pressure on the rupiah.

An Economist of UPN Veteran Yogyakarta, Ardhito Bhinadi, said the weakening of the rupiah does not only happens in Indonesia, but also in other developing countries. The weakening of regional currencies cannot be separated from the Fed US Central Bank policy that raises interest rates and tax ammesty or tax amnesty policies.

"US dollar which has been invested in developing countries is flowing back into the country because of the expectations of improving US economy. As a result, the regional currency is weakened, including the rupiah, "said Ardhito.

The Chairman of the Study Center of Financial Economics and Industry Research Institute and Community Service (LPPM) UPN Veteran Yogyakarta said, to reduce the pressure on  rupiah, it needs to diversify payment of exports and imports by bilateral agreements of the use of money respectively for payment of export and import transactions. The goal is to reduce dependence on the US dollar.

While in Jakarta, BI Governor Agus D.W. Martowardojo admitted that all world currencies including rupiah, on Monday were again broadly widened (broadbased) against the US dollar. This is because the US dollar rose sharply since last Friday triggered by the increase of US treasury bills yield which was near the psychological level of 3 percent and the re-emergence of expectations of Fed Fund Rate increase rate (FFR) that came more than 3 times during 2018.

The rise in yields and interest rates in  US itself, according to Agus, was triggered by the rising investor optimism over  US economic outlook as US economic data continued to improve and by the trade war tension between the US and China that took place during 2018. (Ira / Lmg)