How to strengthen the rupiah<\/p>\n
There is little the monetary authority can do to support the
\nrupiah. The point is that aside from the fact that it doesn't
\nhave the money, the downside of the currency is caused mainly by
\npolitical factors. Any act of intervention by Bank Indonesia (BI)
\nwould be like adding water to the ocean.<\/p>\n
In that context it is understandable that BI has chosen to let
\nthe market decide the value of the rupiah against the U.S.
\ndollar. After all, the government, possibly with the help of the
\npolitical elite, need only send out some positive signals and let
\nthe market correct itself. The question is, does everyone want a
\nstronger rupiah?<\/p>\n
Since the 1990s the rupiah has become an exotic currency
\ntraded in Singapore, London and New York. Singapore has even
\nestablished itself as the center of the speculative trade in the
\nrupiah. Motives for speculation in the rupiah are not only
\neconomic, but also to hinder the performance of Gus Dur's
\n(President Abdurrahman Wahid's) government.<\/p>\n
Remaining calm is the best answer to the rupiah's current
\ndownside. We must learn from the mistakes we made at the
\nbeginning of the current economic crisis. The President and his
\nteam, however, should also do their best to pounce on any effort
\nto weaken the government's performance, whether this is done by
\nverbal means or by other means.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/how-to-strengthen-the-rupiah-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }