ID :
31162
Wed, 11/19/2008 - 22:01
Auther :
Shortlink :
https://www.oananews.org//node/31162
The shortlink copeid
BI'S CALL ON PUBLIC TO SELL DOLLARS BAD SIGNAL: KADIN
Jakarta, Nov 19 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) said that Bank Indonesia (BI)'s calls on the public to release their US dollars were a bad signal and counterproductive because it would trigger speculative buying of the currency.
"This afternoon, capital owners increased their dollar hunting activity in anticipation of the worst impact of the rupiah's depreciation and blanket guarantee," Kadin's chairman for fiscal and monetary affairs Bambang Soesatyo said here on Wednesday.
He said that BI, in its capacity as the central bank, should not make a statement calling on the public to release their dollars because the local and international markets were facing US dollar scarcities.
"We could understand the BI appeal which was aimed at creating mutual benefit among the dollar holders and the BI because it could increase the central bank's reserves but it was announced not in the correct time," he said.
He said that the BI call could be construed that the present rupiah exchange rate at between Rp11,000 - Rp12,000 against the greenback had reached the equilibrium point in the current financial crisis.
"This means that now is the time for dollar holders to take profit because the rupiah depreciation is already at its peak. But the fact explains to us that the BI call is an indication that BI has panicked because its foreign exchange reserves began to be running short," he added.
Soesatyo even expressed hope that BI would lower its benchmark interest rate (BI Rate) so that public banks would prepare to lower their interest rates to boost the provision of working capital credits and ignite investment.
"Amid the drop of demand due to the present financial crisis, the public and the business world need a stimulus as a breakthrough. Without a stimulus, the public and the business world would be trapped in the current economic meltdown," he added.
He said that the lowering of the banking interest rate and the prices of subsidized fuel oils could serve as a stimulus that could liberate the public and business world from the economic trap at present.
"Why should we be afraid of exploring the potentials of domestic market whose consumers reach over 200 million,"he questioned.
"This afternoon, capital owners increased their dollar hunting activity in anticipation of the worst impact of the rupiah's depreciation and blanket guarantee," Kadin's chairman for fiscal and monetary affairs Bambang Soesatyo said here on Wednesday.
He said that BI, in its capacity as the central bank, should not make a statement calling on the public to release their dollars because the local and international markets were facing US dollar scarcities.
"We could understand the BI appeal which was aimed at creating mutual benefit among the dollar holders and the BI because it could increase the central bank's reserves but it was announced not in the correct time," he said.
He said that the BI call could be construed that the present rupiah exchange rate at between Rp11,000 - Rp12,000 against the greenback had reached the equilibrium point in the current financial crisis.
"This means that now is the time for dollar holders to take profit because the rupiah depreciation is already at its peak. But the fact explains to us that the BI call is an indication that BI has panicked because its foreign exchange reserves began to be running short," he added.
Soesatyo even expressed hope that BI would lower its benchmark interest rate (BI Rate) so that public banks would prepare to lower their interest rates to boost the provision of working capital credits and ignite investment.
"Amid the drop of demand due to the present financial crisis, the public and the business world need a stimulus as a breakthrough. Without a stimulus, the public and the business world would be trapped in the current economic meltdown," he added.
He said that the lowering of the banking interest rate and the prices of subsidized fuel oils could serve as a stimulus that could liberate the public and business world from the economic trap at present.
"Why should we be afraid of exploring the potentials of domestic market whose consumers reach over 200 million,"he questioned.
