ID :
32447
Wed, 11/26/2008 - 10:07
Auther :
Shortlink :
http://m.oananews.org//node/32447
The shortlink copeid
RUPIAH SEEKING NEW EQUILIBRIUM : MINISTER
Jakarta, Nov 25 (ANTARA) - Acting Coordinating Minister for Economic Affairs/Finance Minister Sri Mulyani Indrawati said the rupiah exchange rate is seeking a new equilibrium.
"The rate is seeking a new equilibrium. It will happen faster with the participation of all of you," she told participants of an Investor Summit and Capital Market Expo 2008 here Tuesday.
The current rate of over Rp 12,000 per US dollar would create a situation of imported inflation, she said, adding that with the declining exchange rate, Indonesia had to pay more for its imports.
However, there would be some compensation from the current decline in the world oil price.
"The world prices of commodities and oil are decreasing and this will be followed by a decrease in the price of fuel oil. This will slow down the inflation rate," she said.
According to the minister, all currencies were undergoing depreciation against the US dollar so that the whole world was actually seeking a new equilibrium.
"Present conditions are if the US dollar is strengthening whereas the US economy is actually showing unstable conditions," she said.
The minister said the US dollar was also seeking a new equilibrium and the US economy was undergoing a transformation.
She added the government was making efforts to allocate funds from the state budget to support liquidity in the market.
"The liquidity is used to move the economy instead of speculating or purchasing unnecessary foreign exchange," she said.
"The rate is seeking a new equilibrium. It will happen faster with the participation of all of you," she told participants of an Investor Summit and Capital Market Expo 2008 here Tuesday.
The current rate of over Rp 12,000 per US dollar would create a situation of imported inflation, she said, adding that with the declining exchange rate, Indonesia had to pay more for its imports.
However, there would be some compensation from the current decline in the world oil price.
"The world prices of commodities and oil are decreasing and this will be followed by a decrease in the price of fuel oil. This will slow down the inflation rate," she said.
According to the minister, all currencies were undergoing depreciation against the US dollar so that the whole world was actually seeking a new equilibrium.
"Present conditions are if the US dollar is strengthening whereas the US economy is actually showing unstable conditions," she said.
The minister said the US dollar was also seeking a new equilibrium and the US economy was undergoing a transformation.
She added the government was making efforts to allocate funds from the state budget to support liquidity in the market.
"The liquidity is used to move the economy instead of speculating or purchasing unnecessary foreign exchange," she said.
