Thread: currency swap deal

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:

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.

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.

Originally Posted by gilbert de jong

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.

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)

Originally Posted by gilbert de jong

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.

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.

Hi y'all,

For some interesting reading about the devaluation and the pro's and con's check out http://hubpages.com/hub/The-Devaluing-U ... erspective I hope the link works.
It explains alot, atleast it did so for me.
friendly greetings.........Gilbert.

Tregger

It 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 :)

link doesnt seem to be ok...:(
hub/The-Devaluing-US-Dollar-A-aperspective, before this... hubpages.com
greetzzzzzz, Gilbert.

This problem with the links is a pisser MODERATOR!!!!! FIX IT PLEASE!!!! :)