No money trading, please!

No money trading, please!

From Media Indonesia

The value of the rupiah against the U.S. dollar is not logical any longer. The rupiah has sharply declined to a point where it is not clear how much further it will go. The change in exchange rate takes place not in a matter of hours or days but seconds. What devil has possessed our monetary world?

I am a layman in financial and monetary affairs, but it is clear from recent happenings that things have gone wrong. In my opinion had trading been done only in goods and services, the large-scale purchase of dollars by (part of) the community would not have happened. Because the dollar has been a trading commodity, certain people continue in their speculative money dealings.

The authorities should introduce measures to prohibit dollar transactions without a clear and justifiable reason. Dollar transactions that can be justified are those for certain purposes and supported by pertaining documents.

It can be expected that such a restriction will return the economy to normal where transactions only cover goods and services. Money would also be reinstated to its function as a value of exchange. Currently, it also functions as a trading commodity alongside its main function as a means of exchange, something which has almost lost its meaning for our rupiah.

M. SUNARTO

Jakarta