Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests can post but they do have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.

Disclamer:

We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."




Join Us for Dinar Discussions and More -- We Keep it REAL
 
HomeSearchMemberlistFAQLog inRegister
Help Us Drain the SWAMP in DINARLAND

REPORT TONY RENFROW for violating his Court Order to stay away from Dinar -

Judge's email: ksd_murguia_chambers@ksd.uscourts.gov
PHONE - 913-735-2340

DA's email: Scott.Rask@usdoj.gov
PHONE - 913-551-6730
DINAR INFORMATION LINKS

PARTNER SITES
Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Share | 
 

  Indonesia's Currency is Spiraling Down 5/29/18

Go down 
AuthorMessage
Ssmith
GURU HUNTER
GURU HUNTER
avatar

Posts : 16999
Join date : 2012-04-10

PostSubject: Indonesia's Currency is Spiraling Down 5/29/18   Wed May 30, 2018 8:11 am

Indonesia's currency is spiraling. It'll have to make sacrifices to save it

Yen Nee Lee
Published 11:24 PM ET Mon, 28 May 2018

  • The rupiah has been one of the worst-hit Asian currencies amid rising U.S. Treasury yields and strengthening in the dollar.
  • Indonesia's central bank announced an off-schedule meeting on May 30, increasing speculations that it will hike interest rates again to support the rupiah.
  • Indonesia increased interest rates just two weeks ago, so another rise so quickly would likely hurt growth, analysts said.



Iqro Rinaldi | Reuters | Two ladies walking towards the entrance of Bank Indonesia, the central bank in Southeast Asia's largest economy.

Indonesia's rupiah has been growing worryingly weak, and the country's central bank has seen little success after multiple attempts to prop up the currency.

Now, Bank Indonesia said it will meet again on Wednesday — and speculation is rife that the central bank has more tricks up its sleeve.

The rupiah has been one of the worst-hit Asian currencies as investors pull out of the Indonesian stock and bond markets amid rising U.S. Treasury yields and strengthening in the greenback. The falling value of the rupiah could spell trouble for the country's large foreign currency debt, and the outflows from its bonds are bad news for its government.

The central bank tried to stem the currency weakness with measures including hiking interest rates and buying sovereign bonds, but the rupiah still depreciated: It fell to 14,202 per U.S. dollar on May 23. That was the weakest in more than two years.



With the persistent rupiah weakness, more "rate hikes may be needed, with the next one possibly as early as this week," Eugene Leow, a strategist at Singapore's DBS Bank, wrote in a Monday note.

The central bank hiked interest rates by 25 basis points in its mid-May meeting — the first raise since November 2014. Central bankers were scheduled to convene again in June, but Bank Indonesia last Friday said an additional policy meeting would be held on May 30.

Perry Warjiyo, the newly minted governor of Bank Indonesia, said the additional meeting wasn't an "emergency" but there's a need to be ahead of the curve given that the Federal Reserve is scheduled to review its policy on June 12 and 13.

"The dynamics offshore happen so quickly and market perceptions are formed quickly that there is a tendency that some became irrational. These dynamics need to be responded to immediately to stabilize things," Warjiyo said in a news conference on Monday.

Higher rates may hurt Indonesia's growth

Analysts, including those at Morgan Stanley, are expecting another 25-basis-point increase in Indonesia's interest rates this Wednesday. But some warned hiking rates again within such a short period may cripple the economy.

Australian lender ANZ Bank said Indonesia needs another two 25-basis-point hikes to support the rupiah. If the central bank does such an adjustment in the next two meetings on May 30 and June 27-28, the country will have increased interest rates by 75 basis points in just six weeks.



"Such an aggressive hiking cycle would weigh on growth," ANZ analysts wrote in a note on Monday, adding that a 100-basis-point increase in the policy rate could shave 0.2 to 0.4 percentage points off the country's annual growth.

"As such, we expect more macro prudential measures to partially offset the negative impact on growth. Already, the central bank is looking to relax the housing loan-to-value ratio," the analysts said.

Indonesia, the largest economy in Southeast Asia, has already seen growth disappoint: Its economy missed analyst expectations by growing only 5.06 percent in the first quarter of the year. Higher interest rates make lending more expensive, which can lead to lower spending by businesses and consumers — a further dampener on growth.

*****************
>>>TNTBS's YouTube Channel<<<
Back to top Go down
View user profile
ReapAndSow73
GURU HUNTER
GURU HUNTER
avatar

Posts : 1841
Join date : 2015-08-13

PostSubject: Re: Indonesia's Currency is Spiraling Down 5/29/18   Wed May 30, 2018 8:15 am

1. Indo currency has redenominated in recent times, didn't help them in the long run
2. Mountain Goat PUMPED IRD in 2013, saying it was in the RV basket - don't ever forget that (once again, Recaps guilty of fraud)
Back to top Go down
View user profile
Kevind53
Super Moderator
Super Moderator
avatar

Posts : 26622
Join date : 2011-08-09
Age : 18
Location : Umm right here!

PostSubject: Re: Indonesia's Currency is Spiraling Down 5/29/18   Mon Jun 04, 2018 12:30 am

Another guru pumped currency in the crapper ... gee what a surprise (not).

*****************
Trust but Verify --- R Reagan Suspect

"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18

       
Back to top Go down
View user profile
 
Indonesia's Currency is Spiraling Down 5/29/18
Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Dinar Daily :: OTHER INVESTMENTS :: OTHER CURRENCIES - DONG - ZIM - YUAN - etc-
Jump to: