Mandiri Sekuritas Economy : BI will not follow Brazil currency policy

Brazil, Oct 20, made a surprise move to impose a 2 per cent flat one-way tax on all new capital inflows. We queried Bank Indonesia whether they would consider such a move. Our email to Hartadi Sarwono, Bank Indonesia Deputy Governor came back with a reply that BI is still comfortable with their current policy to manage Rp volatility and saw no need to use more stringent policy. BI is still comfortable with the current
range.