Bank Indonesia brings back the Rupiah to Jakarta
- Indonesia’s Central Bank and the Ministry of Finance have put new measures forward to safeguard the Rupiah from extreme volatility and strengthen domestic liquidity onshore.
Indonesia’s Central Bank and the Ministry of Finance have put new measures forward to safeguard the Rupiah from extreme volatility and strengthen domestic Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term onshore.
The Rupiah is currently traded offshore with restrictions mainly by import/ export businesses.
The new measures enforce Indonesian exporters’ funds parked overseas to be returned to Indonesia and the second element is to limit offshore borrowing.
The Indonesian export market is huge and worth around $158 billion (2010) and imports at around $132 billion(2010). Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term reserves in Q1 2011 were at around $100 billion.
Investors can trade the IDR on the local Jakarta Futures Exchange and these new regulations seem to bolster local trade and investments.
The second aspect of the regulation can give a harsh signal to overseas investors. If the government is foreseen to be controlling the currency investors will be reluctant to invest in Rupiah and Rupiah denominated assets. As the new measures were published the USD INR fell by 4%.
Local spot FX is huge in Indonesia, locally investors can only trade in standard contract sizes; and mini and micro are more attractive as GDP per Capita is less then $5000 (2010), hence the global FX attraction. Players such as Valbury Capital have expanded their force and launched their international division in the UK.
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Indonesia’s Central Bank and the Ministry of Finance have put new measures forward to safeguard the Rupiah from extreme volatility and strengthen domestic Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term onshore.
The Rupiah is currently traded offshore with restrictions mainly by import/ export businesses.
The new measures enforce Indonesian exporters’ funds parked overseas to be returned to Indonesia and the second element is to limit offshore borrowing.
The Indonesian export market is huge and worth around $158 billion (2010) and imports at around $132 billion(2010). Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term reserves in Q1 2011 were at around $100 billion.
Investors can trade the IDR on the local Jakarta Futures Exchange and these new regulations seem to bolster local trade and investments.
The second aspect of the regulation can give a harsh signal to overseas investors. If the government is foreseen to be controlling the currency investors will be reluctant to invest in Rupiah and Rupiah denominated assets. As the new measures were published the USD INR fell by 4%.
Local spot FX is huge in Indonesia, locally investors can only trade in standard contract sizes; and mini and micro are more attractive as GDP per Capita is less then $5000 (2010), hence the global FX attraction. Players such as Valbury Capital have expanded their force and launched their international division in the UK.