Daring measures needed?

Daring measures needed?

When market sentiments are nervous and highly sensitive to
breaking news, any moves with the potential to disrupt
tranquility should, in theory, be avoided.

Surprisingly, however, the currency market reacted positively,
against all expectations, to news that Bank Indonesia Governor
Soedradjad was being replaced. The rupiah's value on the spot
market rose by 400 points against the U.S. dollar.

Continuing volatility in the rupiah-dollar exchange rate
reflects the strong linkage between political decision-making and
the currency markets. Tuesday's positive reaction toward
Soedradjad's replacement suggests that the market has been
awaiting daring political moves, which our leaders have been
hesitant to conjure. If this is true, then it implies that
courage is needed to address the current monetary crisis.

If the President has deemed it necessary to replace his
central bank governor at a time like this, strong and compelling
reasons for this courageous decision must exist.

-- Media Indonesia, Jakarta