Mar'ie wants WB and ADB to cope with volatile yen
Mar'ie wants WB and ADB to cope with volatile yen
JAKARTA (JP): Minister of Finance Mar'ie Muhammad yesterday
urged the World Bank and Asian Development Bank (ADB) to take
more initiatives to maintain the stability of the Japanese yen
rate against the U.S. dollar, since a high volatility would
affect the world economy.
"I have repeatedly asked the World Bank and ADB to initiate
efforts, in cooperation with monetary authorities of Japan and
the United States, to prevent the yen rate from wild
fluctuations," Mar'ie told newsmen yesterday.
The finance minister was asked by newsmen yesterday to comment
on the surge of the yen against the dollar over the last two days
and its impact on Indonesia.
The dollar weakened on Tuesday against the dollar, falling
below 100 for the first time since World War II.
He said the high yen appreciation would hurt Indonesia because
more than 50 percent of its foreign debts are denominated in the
yen.
But the stronger yen also would hurt other borrowers,
including the World Bank and ADB, because they get a portion of
their credit funds from Japan, he said.
Nonetheless, Mar'ie was optimistic that the yen would again
stabilize at a higher rate due to the intervention from the
Japanese and U.S. central banks.
"We don't need to ask for debt rescheduling because we are
able to repay and service our debts," he added.
Dollar rate
Meanwhile, in London, the dollar was firmer in European
trading yesterday, but off its earlier highs on light profit-
taking after rising on the back of upbeat comments by U.S.
officials.
Against the German mark, the dollar was quoted at 1.6070
marks, up 0.45 pfennigs from Wednesday's London close, while it
gained 0.45 against the Japanese yen to 101.15.
The pound was quoted at US$1.5308 and 2.4590 marks compared
with $1.5310 and 2.4580 respectively at the close on Wednesday.
Dealers said trading remained nervous despite attempts by U.S.
President Bill Clinton, Treasury Secretary Lloyd Bentsen and
Federal Reserve Chairman Alan Greenspan to shore up the dollar in
comments Wednesday.
In Frankfurt, the dollar opened at 1.6063 German marks, up
from 1.6040 at the previous close.
In Zurich, the dollar opened at 1.3500 Swiss francs, up from
1.3465 at the previous close.
In Brussels, the dollar opened at 33.10 Belgian francs, up
from 32.96 at the previous close.
In Paris, the dollar opened at 5.5070 French francs, up from
5.4750 at the previous close.
In Tokyo, the dollar closed at 101.31 Japanese yen, up from
the previous close at 100.65.
In Singapore, the dollar closed at S$1.5273, down from
S$1.5275 at the previous close.
In Hong Kong, the dollar closed at HK$7.7295, up from
HK$7.7280 at the previous close.
Gold opened in Zurich at $389.75, down from $392.85 at the
previous close. In London, it opened at $389.50, down from
$390.50 from the previous close. Gold closed at $389.05 in Hong
Kong, down from $393.25 at the previous close.
Silver opened in Zurich at $5.40, down from the previous close
at $5.53, while in London it started trading at $5.39, down from
the previous close at $5.43. (fhp/vin)