BI Crosses Fingers on China’s Economy.
An employee of Bank Indonesia entered the bank's headquarters in Jakarta, July 12, 2016. Tempo/Tony Hartawan
TEMPO.CO, Jakarta - Bank Indonesia senior deputy governor Mirza Adityaswara hoped that China's economy will improve in the near future, since it will trigger an increase in the world's commodity prices.
Mirza explained that China has been well-known as the biggest market for the world's commodity.
"Hopefully, China's economy will be better, although it's not significant," Mirza said in Jakarta on Monday, August 15, 2016.
Earlier, the Central Statistics Agency (BPS) announced that the commodity price improvement had caused July's trade balance to record a surplus of US$598.3 million.
"The commodity prices in the first quarter increased, but they dropped a little in the second quarter. Meanwhile, the year-to-date commodity prices have increased," Mirza said.
The surplus figure was lower when compared to that in June 2016 that stood at US$900.2 million. Cumulatively, the trade balance surplus over the last seven months stood at US$4.17 billion.
Mirza added that the current account deficit stood at around 2.2 percent of the Gross Domestic Product (GDP), which was still under control.
Mirza added that China's economic recovery would also have impacts on the foreign exchange. Another influential factor, Mirza said, was the Fed Funds Rate, which was predicted to be stable until the end of this year.
GHOIDA RAHMAH
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