Nusa Dua, Bali (ANTARA News) - Bank Indonesia Governor Perry Warjiyo voiced the impact experienced by developing countries, including Indonesia, from normalizing monetary policy of developed countries including the US, during a meeting with Chairman of the Central Banks Board of Governors Jerome Powell .
The meeting was held on the sidelines of the 2018 IMF-World Bank annual meeting, Nusa Dua, Bali on Friday, according to an official BI statement published Saturday.
"Both of them talked about global economic development, normalization of monetary policy in developed countries, and the impact on developing countries," said an official BI statement regarding the meeting .
The US is a country that has implemented normalization of monetary policy for the past three years by easing fresh funds into the global liquidity market.
The normalization of monetary policy was implemented with the gradual increase in the interest rate of the Feds monetary policy (Fed Fund Rate) and also the normalization of the Central Banks balance sheet.
As a result of the normalization of policies carried out by the Fed, developing countries experienced a foreign capital flight and suffered from exchange rate pressures.
Indonesia is one of the developing countries affected, but Indonesias condition is still far better than other countries, such as Argentina and Turkey.
In a meeting with the number one person in the most influential Central Bank in the world, Perry also explained the resilience of the Indonesian economy to the impact of the global economic spell supported by a policy mix between monetary authorities and the government. """3"""
Source: ANTARA News