Indonesia central bank says rupiah won't be part of any global currency war

Indonesia's central bank said on Tuesday there is a risk of a global currency war as the dollar gains strength but the rupiah will not be involved. -- PHOTO: REUTERS
Indonesia's central bank said on Tuesday there is a risk of a global currency war as the dollar gains strength but the rupiah will not be involved. -- PHOTO: REUTERS

JAKARTA (REUTERS) - Indonesia's central bank said on Tuesday there is a risk of a global currency war as the dollar gains strength but the rupiah will not be involved.

Peter Jacobs, Bank Indonesia spokesman, said the central bank will maintain the exchange rate of rupiah to reflect the fundamentals of Southeast Asia's largest economy even when other currencies depreciation.

The statement echoes Bank Indonesia Governor Agus Martowardojo, who on Monday night said he sees a global currency war in the next three years.

"Looking ahead, there is a risk of currency war where the dollar tends to strengthen so that other countries will be affected and that Indonesia must remain vigilant," Mr Martowardojo said.