In its activities, the BI does not accept the transaction as savings and loans in commercial banks. But BI transacting with banks that are under treatment. This is in accordance with BI's role as a bank of banks in Indonesia.
Why There is a Central Bank?
The central bank was established as the governing any banking problems in Indonesia. So that the existing banks should refer to the rules issued by BI in each policy. Included in even the simplest rules. As a bank operating on holiday schedules off-specific holidays.
In addition, commercial banks and rural banks can not arbitrarily determine the system of interest to its customers. In this case the BI regulate it through a rule called the BI Rate. BI Rate itself means the interest rate policy that describes the monetary policy stance and established and disseminated to the public.
The essence of this policy is to keep the rupiah value is always in a stable condition. Thus, high inflation is not the case. Due to the existence of inflation means prices will soar, as well as decrease the level of welfare due to declining purchasing power.
This is one of the privileges of Bank Indonesia, as the monetary authority in the country. So that the BI has the right to make policies that are considered necessary, in order to maintain domestic monetary stability by preventing inflation.
BI has the same duty to keep the circulation of money in the community. It is also intended to prevent runaway inflation. Way is every emerging new kind of money then the money that has been circulating a long time will be withdrawn and destroyed. Thus the money supply will not increase, although the BI issued new denominations.
{ 0 comments... Views All / Send Comment! }
Post a Comment