Indonesia Central Bank says will continue to intervene, buy bonds

JAKARTA: Bank Indonesia will continue to intervene in the foreign exchange market and buy government bonds until markets stabilise, Governor Darmin Nasution said on Friday.

Indonesia's central bank on Thursday stepped in to prop up the rupiah by intervening in the forex market and buying government bonds, after selling by foreign investors drove the domestic currency sharply lower.

Nasution said the country's foreign reserves, which have more than doubled in the past two years to reach $124.6 billion by end-August, were more than enough to intervene and that it will buy bonds from anyone who wants to sell at the market price.

Copyright Reuters, 2011