Indonesia Raises Foreign Currency Deposit Rate

8 December 2022 02:23

The indonesian deposit lending institution have raised their foreign currency deposit interest rate at commercial banks by 100 basis points increasing it to one point 75%.

The head of the LPS Commisionr Board Purbaya Yudhi Sadewa confirmed that rate increase will come into effect starting from friday the 9th of Decmber until the 31st of January 2023.

Purbaya explained that the rate increase was done in a bid to attract more people to hold their foreign currencies in in Indonesia. Especially dollars and foreign currencies accumulated from from exports. With the increase the nominal value of FX deposits is higher than it is in Thailand and Singapore.