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.