# Indonesian rupiah weakens as central bank partly funds government budget

> The rupiah is the worst-performing Asian currency this year, partly because Bank Indonesia is buying 397.6 trillion rupiah of government bonds to help finance a larger deficit tied to COVID-19 spending. Investors are concerned about this debt monetization arrangement, which is likened to quantitative easing.

- Date: 2020-08-21 · published 2020-08-21T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/51926-indonesian-rupiah-weakens-as-central-bank-partly-funds-government-budget
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Currency weakness raises Indonesia's import costs for feed ingredients, which can support local feed prices. The story is primarily about monetary policy and currency risk rather than a direct change in commodity supply.

## Read by commodity

- USDIDR: bullish ▲

## Sources

- cnbc.com: https://www.cnbc.com/2020/08/21/indonesian-rupiah-weakens-as-central-bank-partly-funds-government-budget.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.