The IDR/USD volatility during January-March 2018 was the lowest compared to the currencies of high-risk countries (fragile five) and in the ASEAN region. Rupiah volatility is around 8%, while Brazilian real volatility is 15%, Mexican pesos is 13%, Turkish lira is 8.8%, Russian ruble is 14%, South Korean won is 9%, Malaysian ringgit is 9.3%, Philippine peso is 8.2%, and Thai baht is 9%. While being compared to the period 2000-2015, the volatility was the highest within the ASEAN (the average is 10%). What happened to the IDR/USD volatility? Using secondary data from Central Bank and IDR/USD exchange rate from 2004 - 2015, we analyzed 143 data with GARCH 1.1, we found that Trade Openness, Reserve Assets, and Stock Market Index negatively and significantly determined The Exchange-rate volatility. Productivity positively and significantly determined The Exchange-Rate Volatility. While Bank Intervention positively but not significantly determined The Exchange-Rate Volatility, and Inflation negative but not significantly determined The Exchange-Rate Volatility. In order to reduce the exchange-rate volatility, the authority will reduce productivity and increase Trade Openness, Reserve Assets, and Stock Market Index.
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