The year 2006 was also an important one as we settled our outstanding obligations to the IMF without triggering significant turbulence in the market. With the debt now cleared, we are now a ‘regular’ member of the IMF. Even though the outstanding obligations have been paid, our foreign exchange reserves position was maintained at an acceptable level.
This improved the confidence of market players in the foreign exchange markets. Throughout 2006, the rupiah to US dollar exchange rate tended to be stable at a level of Rp.9,100 – 9,400 per USD with relatively lower volatility than the previous year (See Graph 2).