Bank Indonesia Strengthens Currency Operations and Denies Redenomination Rumors

Expansion of Foreign Exchange Operations

Bank Indonesia (BI) has announced plans to expand its foreign exchange operations by introducing transactions in Chinese Yuan (CNY) and Japanese Yen (JPY) alongside the existing rupiah transactions ¹

. This move aims to enhance the stability of the rupiah and improve the effectiveness of monetary policy transmission. According to Josua Pardede, Chief Economist at Bank Permata, this policy is part of efforts to deepen the money market and foreign exchange market, while strengthening the framework for local currency transactions (LCT).

Denial of Redenomination Rumors

In a separate development, BI has strongly denied rumors circulating on social media about the alleged introduction of redenominated rupiah banknotes ²

. The central bank clarified that information suggesting the launch of new, simplified rupiah currency in 2026 is false and misleading. BI emphasized that their current focus remains on maintaining currency stability and supporting economic growth.

Implications for Currency Stability

The expansion of BI's currency operations into CNY and JPY is seen as a strategic move to enhance market liquidity and stabilize the rupiah. By broadening the range of currencies in which it conducts operations, BI aims to create a more robust framework for managing exchange rate volatility. This development comes as BI continues to monitor global economic conditions and their potential impact on Indonesia's financial markets.