Singapore says it does not control rupiah forex trade<\/p>\n
SINGAPORE (AP): Singapore officials on Thursday rebutted
\nIndonesian President Abdurrahman Wahid's remarks that the
\nSingapore government should rein in currency trading by
\ncommercial banks. Wahid claims such trading has dragged down the
\nvalue of Indonesia's rupiah currency.<\/p>\n
\"The Singapore government does not exercise any control over
\nthis currency trading,\" the Monetary Authority of Singapore or
\nMAS said in a statement.<\/p>\n
Singapore's Straits Times newspaper earlier this week quoted
\nWahid as saying that the MAS - Singapore's de facto central bank
\n- \"should advise commercial banks to stop dealing\" in the
\nIndonesian rupiah. The currency's value has dropped by about 25
\npercent against the U.S. dollar in the past year.<\/p>\n
The Indonesian rupiah was trading at 9,375 against the dollar
\nearly Thursday.<\/p>\n
In its statement, the MAS said Southeast Asian regional
\ncurrencies have recently come under pressure from \"factors
\nrelated to capital flows, stock market weakness, economic
\nprospects and political developments.\"<\/p>\n
\"Banks do not by themselves determine the exchange rate of a
\ncurrency,\" the statement said.<\/p>\n
\"The volume of rupiah trading is thin\" in Singapore, the
\nstatement added.<\/p>\n
The MAS statement was the latest in a recent barrage of
\nexchanges between Wahid and the Singapore government.<\/p>\n
Wahid in late November berated Singapore after a summit of
\nSoutheast Asian leaders in the city-state, accusing Prime
\nMinister Goh Chok Tong of currying favor with China at the
\nexpense of Indonesia and other less-developed Southeast Asian
\ncountries.<\/p>\n
After a meeting with Singapore's Senior Minister Lee Kuan Yew,
\nWahid accused Lee of rudely suggesting that Wahid leave office
\nsoon.<\/p>\n
Wahid's outburst shocked Singaporeans and political observers
\naround Southeast Asia, where leaders are known for keeping most
\ndisputes quiet in the name of regional unity.<\/p>\n
Singapore and other ASEAN countries have been rapidly
\nrecovering from Asia's 1997 to 1998 economic crisis, while
\nIndonesia is still riddled with economic fallout, separatist
\nviolence and ethnic clashes.<\/p>",
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