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