Daring measures needed?<\/p>\n
When market sentiments are nervous and highly sensitive to
\nbreaking news, any moves with the potential to disrupt
\ntranquility should, in theory, be avoided.<\/p>\n
Surprisingly, however, the currency market reacted positively,
\nagainst all expectations, to news that Bank Indonesia Governor
\nSoedradjad was being replaced. The rupiah's value on the spot
\nmarket rose by 400 points against the U.S. dollar.<\/p>\n
Continuing volatility in the rupiah-dollar exchange rate
\nreflects the strong linkage between political decision-making and
\nthe currency markets. Tuesday's positive reaction toward
\nSoedradjad's replacement suggests that the market has been
\nawaiting daring political moves, which our leaders have been
\nhesitant to conjure. If this is true, then it implies that
\ncourage is needed to address the current monetary crisis.<\/p>\n
If the President has deemed it necessary to replace his
\ncentral bank governor at a time like this, strong and compelling
\nreasons for this courageous decision must exist.<\/p>\n
-- Media Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/daring-measures-needed-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }