Thread: currency swap deal

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:

http://news.alibaba.com/article/deta...-gdp%252C.html

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: )

Shite when are you guys going to get the link thingy fixed? Here;s the text anyway:

Meanwhile, the Indonesian rupiah <IDR=> 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 <IDRNDFOR=> was quoted at 14,850 per dollar on Wednesday, implying a sharp drop of 19 percent from the spot rate.

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%.

I agree with you Jimbo. The recent fall of the indonesian currency is an headache for local 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.

Originally Posted by ronb

Originally Posted by Markit

So I'm hoping the currency will tank and from the prognosis "they" say the Rupiah should fall another 20% - sure hope so :lol:

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.

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...

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 :(