The currency trading market today is in the midst of uncertainty. Especially regarding the value of the Rupiah, it is stated that the movement of this currency needs to have the proper foundation. Until the market closing, the Rupiah rate closed lower at Rp. 15,665 per USD.

Rupiah closed down around 0.02% from market opening at Rp. 15,663 per US dollar. According to many economic experts, one thing that weakened the Rupiah's position was the lack of economic sentiment and perceptions of risk over concerns about the Rupiah.

"The market is expecting that there will be a further increase in interest rates from the FED and followed by BI," said Fikri, one of the Senior Economists at KB Valbury Sekruitas. He continued that this was the thing that created a feeling of uncertainty about the Rupiah.

On the other hand, domestic sentiment also contributed to the economic slowdown experienced by the IDR in today's market. The factors driving Indonesia's economic growth are disproportionate to those that hinder it.

Good News About Easing COVID Policy and Use of Rupiah in 4 Additional Countries Failed to Sustain Rupiah Value

Other economists see that trading in the Rupiah will likely slightly strengthen before the year closes. The market must start to be optimistic, and fears of a fall in the Rupiah must decrease. It is assumed that the Rupiah trade balance will print positive results.

According to data from Refinitiv, the Rupiah could appreciate quite sharply in the last few days before the new year. Moreover, now there is two good news which are projections for additional growth in the value of the Rupiah, one of which is regarding the COVID policy.

On Wednesday, China said it would continue to relax its COVID policies. China is now less worried about trade flows, and it is hoped that easing will continue to boost Beijing's economy, which will impact trading countries.

Capital outflow from China will be a positive aspect that the Rupiah must utilize. The policies taken must be strategic if the Indonesian economy can grow thanks to this economic movement. The uptrend should be close to a peak without a small deficit.

Additionally, the covid policy is only one thing that can push up the value of the Rupiah. This is because the more good news is announced by the Governor of Bank Indonesia, Perry Warjiyo. He mentioned that the Rupiah could not only be used in the domestic market.

This year, Bank Indonesia is said to have collaborated with the Central Banks of Malaysia, Singapore, the Philippines and Thailand and signed a cooperation document to implement a cross-border payment system in the ASEAN region without needing conversion.

Alias, now Indonesian people can use Rupiah for transactions in these four countries without changing the destination country's currency. President Joko Widodo's dream is to use Rupiah in other countries with connected payment systems.

Quoting from the official website of Bank Indonesia, BI is currently conducting a trial phase first. A QR Code based payment is the one to use. So that Bank Indonesia will continue to facilitate users' use of this cross-border payment program.

Bank Indonesia is Trying to Make Inflation Lower Than 5.4 Per Cent

Approaching the end of the year, Bank Indonesia also has plans and other good news. It is stated that Bank Indonesia is trying to lower inflation. From the previous projection of 5.4 per cent, Bank Indonesia will try to reduce it again.

Governor of Bank Indonesia, Perry Warjiyo, said that Indonesia's inflation could reach 6 per cent. But after looking at November's data, it could be 5.4%. But seeing the movement of the Indonesian economy in December, inflation could be lower than projected.

Indonesia continues to carry out economic recovery to return to pre-pandemic levels quickly. And seeing the movement of the Indonesian economy, the Rupiah should also be boosted. It's just that the Rupiah has yet to find the most appropriate foundation for a better level.