Bali and world news and views editor's comments;
The Indonesian Rupiah has dropped almost over 4% in the last few days against the American dollar.
The reasons for this are e numerous but the major reason is Indonesia is considered a emerging economy and is caught up in the emerging market sell off of currencies and stocks which started last week. The Argentine Peso endured a traumatic two days that saw the currency shed 20 percent in value .
A drop of 4% in the Indonesian Rupiah is bad news for Indonesians on fixed incomes.
It is mixed news for hotels who will benefit from paying less to their staff in dollars but at the same time receive less income as most hotels are now listed in Indonesia Rupiah.
It is great news for for tourists coming in Indonesia, especially Americans who will be able to rent and buy a lot more.
It will be positive news for most foreigners buying or leasing Bali properties since most properties are listed in Rupiah and most sellers are slow to react.
Where the Rupiah is going nobody knows. Let's hope it does not go back to the 16,000 per US dollar mark that it hit 20 years ago.
Editor: Yurou
JAKARTA, Sept. 5 (Xinhua) -- Indonesia has gradually spent in total of 11.9 trillion rupiah (about 796.7 million U.S. Dollars) to reduce the pressures from depreciated value of national currency rupiah against the U.S. dollar at present through several market operations, Indonesian central bank (BI) governor said here on Wednesday.
The operations were carried out by buyback mechanism on Indonesian notes (SBN) sold by foreign investors in the last several days, BI Governor Perry Warjiyo said.
The buybacks were conducted on Thursday at 3 trillion rupiah (about 200.8 million U.S. dollars), Friday at 4.1 trillion rupiah (about 274.5 million U.S. Dollars), Monday at 3 trillion rupiah (about 200.8 million U.S. Dollars) and Tuesday at 1.8 trillion rupiah (about 120.5 million U.S. dollars), he added.
"Our focus now is stabilization," Perry said in a hearing with legislators in the parliament.
The buyback mechanism was part of the central bank's intervention to respond the rupiah exchange rate against U.S. dollar, which has developed into a level far from its fundamental range, he said.
Besides the buybacks, BI also conducted interventions in forex trade by assuring sufficient supplies of forex in the country as well as creating regulation to reduce the costs for firms planning to apply hedging mechanism in their forex asset so as to prevent its value from plunging further, he added.
BI also intensified its communications with firms particularly in encouraging them to put their export revenues in domestic market and preventing them to buy huge sum of forex for speculations purposes.
Indonesian currency is facing challenging situation as rupiah exchange value has drastically dropped if compared to the U.S. dollars to around 15,000 rupiah per 1 U.S. dollar.
Perry said the sharp currency value depreciation in Indonesia was generated by external factors that include the ensuing global economy downturns, coupled with the developing trade tensions.
JAKARTA, Sept. 5 (Xinhua) -- Indonesia has gradually spent in total of 11.9 trillion rupiah (about 796.7 million U.S. Dollars) to reduce the pressures from depreciated value of national currency rupiah against the U.S. dollar at present through several market operations, Indonesian central bank (BI) governor said here on Wednesday.
The operations were carried out by buyback mechanism on Indonesian notes (SBN) sold by foreign investors in the last several days, BI Governor Perry Warjiyo said.
The buybacks were conducted on Thursday at 3 trillion rupiah (about 200.8 million U.S. dollars), Friday at 4.1 trillion rupiah (about 274.5 million U.S. Dollars), Monday at 3 trillion rupiah (about 200.8 million U.S. Dollars) and Tuesday at 1.8 trillion rupiah (about 120.5 million U.S. dollars), he added.
"Our focus now is stabilization," Perry said in a hearing with legislators in the parliament.
The buyback mechanism was part of the central bank's intervention to respond the rupiah exchange rate against U.S. dollar, which has developed into a level far from its fundamental range, he said.
Besides the buybacks, BI also conducted interventions in forex trade by assuring sufficient supplies of forex in the country as well as creating regulation to reduce the costs for firms planning to apply hedging mechanism in their forex asset so as to prevent its value from plunging further, he added.
BI also intensified its communications with firms particularly in encouraging them to put their export revenues in domestic market and preventing them to buy huge sum of forex for speculations purposes.
Indonesian currency is facing challenging situation as rupiah exchange value has drastically dropped if compared to the U.S. dollars to around 15,000 rupiah per 1 U.S. dollar.
Perry said the sharp currency value depreciation in Indonesia was generated by external factors that include the ensuing global economy downturns, coupled with the developing trade tensions.
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