Currency traders not to blame

Just like the value of the shares in a publicly listed company, the value of a country's currency reflects the stakeholders' perception of the country's management, prospects of future growth, return on investments and others.

It is not only unfair to blame the currency speculators or traders for a country's currency movements, it is also not right as they merely react to the future prospects of a country's economic development and well-being.

We have seen how the value of the Japanese yen fluctuated in recent years, moving in the range of 80 to 120 yen to one U.S. dollar.

Surely this pretty much tells the story of a country's economic state of affairs. Currency speculators or traders are no different from any rational investors when putting their money to good use.

The politicians should examine themselves and their management of the country, just like the board of directors of a company, to ensure that the country continues to do well in the future.

They should not be complacent due to their past achievements. It is no good for the chairman of the company to blame shareholders for selling off their shares if they see little earning prospect or they can get better returns elsewhere.

Business plans and strategies have to be changed or else the board may have to be changed.

P.H. LOO

Jakarta