Rupiah should strengthen: Camdessus<\/p>\n
BRUSSELS (Reuters): The head of the International Monetary
\nFund said on Wednesday that the battered Indonesian rupiah should
\nstrengthen.<\/p>\n
But he said that the recovery would take time.<\/p>\n
The Indonesian currency has nose-dived despite last week's
\nagreement with the IMF for sweeping economic reforms in return
\nfor a $43 billion bail-out package.<\/p>\n
But, Camdessus said, \"I think that over time the Indonesian
\nprogram should lead to a strengthening of the rupiah as well as a
\nstrengthening of the economy in general.\"<\/p>\n
According to him, Hong Kong and China looked able to escape
\nthe worst of Asia's financial crisis while their neighbors could
\novercome their troubles by 2000.<\/p>\n
IMF managing director Michel Camdessus said Southeast Asian
\neconomies should even emerge stronger than before the turbulence
\nas they would have addressed their most serious structural
\nproblems.<\/p>\n
\"A crisis which is first of all a major threat and a danger
\ncan become an opportunity for changing things so that the country
\nemerges in a better state than before the crisis,\" Camdessus told
\nthe European Parliament's development committee.<\/p>\n
Camdessus expressed confidence that both Hong Kong and China
\nwould succeed in resisting the financial turmoil that has swept
\nthe region.<\/p>\n
He said he expected Asian currencies, which have plunged in
\nvalue over the last six months, to recover from their lows to
\nensure that future growth was not purely driven by exports.<\/p>\n
Turning to China, Camdessus said he had been reassured during
\nrecent talks with Chinese officials that Beijing would not go
\ndown the path of competitive devaluation.<\/p>\n
\"The Chinese are absolutely determined to resist that
\ntemptation.\"<\/p>\n
On the problems of the region's biggest economy, Japan,
\nCamdessus said he had been reassured by talks with Prime Minister
\nRyutaro Hashimoto that the country would announce steps to tackle
\nits banking crisis very soon.<\/p>\n
\"(These measures) should put an end to the Japanese banking
\ncrisis and should make it possible for all these countries to get
\nout of this crisis in a year or two years or three years, in any
\ncase by the end of the century.\"<\/p>",
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