U.S. watches RI closely

U.S. watches RI closely

WASHINGTON (Reuters): The United States is closely monitoring economic and political developments in troubled Indonesia, a senior U.S. Treasury official said on Thursday.

The official added that the Group of Seven (G-7) industrialized nations agree that implementing a currency board, as has been proposed by Indonesia, would not provide a quick fix to the nations economic woes.

"There's a sense that this is a very difficult situation that involves both economic and financial, and very importantly, political developments," the official, who asked not to be named, said referring to Indonesia.

"I don't think there's any kind of disagreement in the G7 on the currency board question in terms of the feasibility of a currency board. Now there's a general sense that there are no silver bullets in this and that a steadfast commitment to reforms is what is necessary," the official added.