fordprefect
Anyone notice this yet?[url]http://in.reuters.com/article/asiaCompanyAndMarkets/idINSP3977020090219[/url]
Markit
No Ford I hadn't noticed that and thanks for bringing it up as I am definitely interested at the moment in what the currency is doing as am intending to buy a big chunk of it in the not too distant future. I'm not quite sure what a "currency swap" is all about. I do know that indonesia has done its best to support the Rupiah for the last 3 months thru its swings (against the ) before Xmas till now from 18000 to 14000 back to now about 17000. So I'm hoping the currency will tank and from the prognosis "they" say the Rupiah should fall another 20% - sure hope so :lol: [url]http://news.alibaba.com/article/detail/finance/100000785-1-indonesian-c.bank-governor-discusses-gdp%252C.html[/url]I do this with a relatively good conscience as this will affect Mr. normal here not very much (I know, that still isn't "not" but hey I was affected by the financial fall too, and here they weren't bothered by it at all, if they even noticed that it had happened :roll: )
Markit
Shite when are you guys going to get the link thingy fixed? Here;s the text anyway: Meanwhile, the Indonesian rupiah fell about 0.9 percent to 12,100 per dollar, but its losses was limited by dollar-selling intervention by the central bank, traders said.Bank Indonesia Governor Boediono said on Wednesday the central bank was prepared to use its ammunition to support the rupiah. [ID:nJAK421428]The rupiah is down just over 8 percent against the dollar so far this year, but the market still expects the currency to weaken further as the economy suffers in the global downturn.The rupiah in one-year offshore non-deliverable forwards was quoted at 14,850 per dollar on Wednesday, implying a sharp drop of 19 percent from the spot rate.
Jimbo
For people like you and me who rely on bringing money into the country it may well be a good thing but to say it does not affect the locals vet much is not true.I have been away 5 months and since coming back I have noticed cost of living increases of over 15%.
KaBIm
I agree with you Jimbo. The recent fall of the indonesian currency is an headache for [b]local[/b] companies/investors. No investment in machines/tools...etc is definitively not a good situation for employment, and prices for imported goods are increasing sharply bringing more pressure for those in needs of this goods.
ronb
So I'm hoping the currency will tank and from the prognosis "they" say the Rupiah should fall another 20% - sure hope so :lol: [/quote]While a sinking Rupiah may seem to suit you - I think in the end it will not. As the currency falls, inflation rises (more expensive imports) which could lead to local unrest and domestic strife.I sure hope they stabilize it.
KaBIm
So I'm hoping the currency will tank and from the prognosis "they" say the Rupiah should fall another 20% - sure hope so :lol: [/quote]While a sinking Rupiah may seem to suit you - I think in the end it will not. As the currency falls, inflation rises (more expensive imports) which could lead to local unrest and domestic strife.I sure hope they stabilize it.[/quote]I definitively agree with this statement again.Pak SBY has recently asked to the BI's board of governor to not only decrease the BI interest rates to help stimulate the credit to potential investors, but also asked to stop the erosion of national currency. However the Bank of Indonesia is not in a confortable position since its reserve in dollars already shrunk for more than 10% in the past few months to help support the rupiah. Hence Jusuf Kalla's recent call to foreign nations to help in the effort to sustain the rupiah at a decent level. Stability in Indonesia, especially with the election coming, will be at this price. Foreigners who applaude the fall of Indonesian Rupiah should better think about it twice...
Tregger
So I'm hoping the currency will tank and from the prognosis [b]"they" say the Rupiah should fall another 20% - sure hope so [/b]:lol: [/quote]While a sinking Rupiah may seem to suit you - I think in the end it will not. As the currency falls, inflation rises (more expensive imports) which could lead to local unrest and domestic strife.I sure hope they stabilize it.[/quote]I definitively agree with this statement again.Pak SBY has recently asked to the BI's board of governor to not only decrease the BI interest rates to help stimulate the credit to potential investors, but also asked to stop the erosion of national currency. However the Bank of Indonesia is not in a confortable position since its reserve in dollars already shrunk for more than 10% in the past few months to help support the rupiah. Hence Jusuf Kalla's recent call to foreign nations to help in the effort to sustain the rupiah at a decent level. Stability in Indonesia, especially with the election coming, will be at this price. [b]Foreigners who applaude the fall of Indonesian Rupiah should better think about it twice...[/b][/quote]Obviously these same boneheads missed the May 1998 riots in Jakarta, 2 days of them. Of course if most used common sense there was no problem but still quite a bit of damage done and the more the IDR falls and the closer we get to presidential elections, the closer we could have parties interested in stirring up trouble.
Markit
Hi Newbie, great to have someone new calling me a "bonehead". It may even be true but i think if you examine the situation now and compare it to then you will find (not just my opinion but non-boneheads who should know agree) Indonesia is in an entirely different position to then. The IMF made the cure so painful that Indo made sweeping changes to its banking systems and stock markets so that it would never happen again. And guess what they seem to have been quite successful - bonehead! Do your homework before you start calling names here :(
Jim Thorpe
And that IMF genius? The new head of the U.S.'s economy, Tim Geithner. We are all screwed.[url="http://www.smh.com.au/opinion/obamas-ec"]http://www.smh.com.au/opinion/obamas-ec[/url] ... -8rk7.html
Tregger
Hi Newbie, great to have someone new calling me a "bonehead". It may even be true but i think if you examine the situation now and compare it to then you will find (not just my opinion but non-boneheads who should know agree) Indonesia is in an entirely different position to then. The IMF made the cure so painful that Indo made sweeping changes to its banking systems and stock markets so that it would never happen again. And guess what they seem to have been quite successful - bonehead! Do your homework before you start calling names here :([/quote]They were successful? So why has the IDR devalued by 22% in the last 5 months and why can it not devalue anymore to the point of runaway inflation and hungry people in the streets? And I am I correct in what you insinuated above, Markit declares Indonesia "riot free" in 2009.Oh and you mention of the stock markets and all is well becuase of the sweeping changes, what year are you living in, it is March 2009 the Dow is back down to levels it has not seen in 12 or 13 yrs and unemployment in the US is at 8.1% headed to 10%+.
Markit
He fella, got news for you. Pretty much the whole planet has been devalued since last October. I reckon most of those "Masters of the Universe" on Wall St. and in London or Paris would thank their lucky stars if their business or investment portfolios had lost "only" 22% :lol: Indonesia's little stock market was reformed, not Wall St. - that's coming now :lol:
KaBIm
22% was a reference made by Tregger to the devaluation of the rupiah (IDR) not to stock. All currencies did not loose 22% of their value against currencies of reference such as Euro (EUR) or dollar (USD). In the past 5 years, rupiah has lost 50% of its value against both Euro & Dollar. Economic fundamentals are different from the period of pre-krismon, I agree, but it does not mean that Indonesia will be trouble free this year if you cumultae the effect of the global crisis on the local economy + a year of election.
gilbert de jong
cutting interest rates, and the moneyprinter working 24/7 leads to devaluation of the USD. If the USD goes 'down', other currency's (countries and economies) follow..UK(pound), the important countries of the E.U(Euro), not to forget Iceland.Kabim in the last 5 years the USD devaluated 30%. So 50% for the rupiah in 5 years, aint that bad for a third world developing country.I Think that markit has a good point in mentioning the downfall of stocks as a reason the rupiah lost 22% in the last 5 months. Tregger, people living under the jalan tol in jakarta are already hungry,not to say starving. If the rupiah would freefall, I dont think it would lead to riots like in 1998. Situation is very different now. At least that's my humble opinion.friendly greetings.............Gilbert.
Tregger
My wife's good friend works as the executive assistant to the owner of a large arms, bullets, water cannon, small firearms, rubber bullets, ect ect importer here, she books the flights and the hotels, the owner has been making trips to Europe, the US, Korea and China buying goods all the time over the past 4 months. This dealer supplies both, all branches of the military and the police here in Jakarta. She told my wife her boss is buying like mad and selling even better to all of her customers, alk in her office is the customers are getting stocked up as they expect trouble. Let's hope it does not happen. Maybe it is just an excuse to buy more so the envelopes are bigger......
KaBIm
Kabim in the last 5 years the USD devaluated 30%. So 50% for the rupiah in 5 years, aint that bad for a third world developing country.[/quote]Funny... I haven't noticed such depreciation against the dollar with some of the currencies of the south-east asian zone (ex THB, which is a highly volatile currency BUT has maintained its rates against the USD in the past 5 years)I Think that markit has a good point in mentioning the downfall of stocks as a reason the rupiah lost 22% in the last 5 months.[/quote]Same example than above, Bangkok stock was in the turmoilt... but in the past 5 month Thai currency didn't drop down. There is less tha 5% diffrence in between an October rate of exchange and the rate you will get on THB vs USD today. THB has even appreciated against EUR... while the rupiah in the same time lost more than 20% of it value against both currencies. I could have taken a similar example with the Philippino Peso or the Vietnamese Dong which depreciated more or less about 5% I think to the dollar in the same time. "Googling" it will show you how different the trend can be... and therefore how scary it can be for the national currency and economy.
gilbert de jong
Hi y'all,For some interesting reading about the devaluation and the pro's and con's check out [url="http://hubpages.com/hub/The-Devaluing-US-Dollar-A-aperspective"]http://hubpages.com/hub/The-Devaluing-U ... erspective[/url] I hope the link works.It explains alot, atleast it did so for me.friendly greetings.........Gilbert.
Jimbo
TreggerIt is nice to have someone with your Knowledge of Indonesia in here. I have yet to see a post where anyone has welcomed you so let me do so. Can I offer just a tad of advice however and that is to tone down the rhetoric a little.21 posts in a few days is very good but it reminds me of the saying that it is sometimes better to listen than to speak. Have a good luck around all the forums and see what has been written before. Get to know the rules to save your posts being modded all the time and last but not least try and be a bit friendlier....it will help :)
gilbert de jong
link doesnt seem to be ok...:(hub/The-Devaluing-US-Dollar-A-aperspective, before this... hubpages.comgreetzzzzzz, Gilbert.
Markit
This problem with the links is a pisser MODERATOR!!!!! FIX IT PLEASE!!!! :)
