High-ranking Indonesian officials are trying to overcome the rupee depreciation, the price of which fell to 15.248 per dollar. It is the lowest level since 1998, Bloomberg reports.
The most negative impact on the economy of Indonesia was caused by the strengthening of the dollar and rising interest rates. As a result, the rupee depreciated by 11% compared to the last year. However, the currency soared from 3000 to almost 17,000 rupees per dollar for the entire period of the Asian crisis and since the introduction of a flexible exchange rate.
At the same time, the analysts observe signs of improvement. This year, investment funds bought about $870 million of government bonds. In this regard, the Minister of Finance of Indonesia stressed that the binding of the country’s economy to the monetary policy of the United States, causing fluctuations in the rupee exchange rate, will occur at an appropriate level.