External debt repayments could weaken IDR: BoA-Merrill

26 Aug 2013

The Indonesia rupiah will face the pressure of external debt repayments in the second half, but this will remain a foreign exchange issue and not an issue of debt sustainability, says the bank.

Outflows from local currency debt remain the biggest risk for the Indonesian rupiah. This is because much of the external debt is tied to US dollar export proceeds, foreign direct and longer-term investments, making it less prone to foreign exchange (FX) fluctuations.

Official numbers put the private sector ...

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