WEBODIGY Business & Finance Journal

BANDUNG – Rupiah inserted into ten groups of the weakest currencies in the world. This is caused by fluctuations due to the volatility of the rupiah by many speculators.

This was revealed by the Director of Currency Management Group (CMG) Farial Anwar, now a journalist workshop on economic and monetary BI & Monetary Instruments Foreign Exchange Market, in Bandung, West Java, on Friday (5/12/2008).

He mentioned that, from 10 eyes of the world’s weakest currency, the rupiah is ranked sixth after Vietnam and Saubomi. The first rank in the occupied by Zimbabwe, followed by Somalia and Turkmenistan.

Farial explained, poor rupiah volatility due to very large, which is currently down sharply compared to other currencies.

In December 2007 compared to December 2008, the rupiah fell 28 percent from the level of Rp9.000 to Rp12.000 per U.S. dollar.

“Unlike the Thai currency Bath, in December 2007 compared to December 2008 only down five percent from 33.69 to 35.55 Bath Bath per USD,” he said.

Bad predicate rupiah, when it was recognized by the Bureau of Monetary Policy Hendar BI. However, he stressed in previous years, the rupiah has also been achieved as the best currency.

Farial added, there are some very simple reasons volatile rupiah against the U.S. dollar, such as free foreign exchange regime, the system of freely floating exchange rate, forex loans, and dependence on large U.S. dollar.

In addition, Farial also revealed, the placement of foreign funds in SBI also be a factor weakening rupiah. Therefore, steps anticipation of weakening rupiah happens, all derivative transactions undertaken by the company must have its underlying transaction.

However, with restrictions on the purchase of dollars with no underlying transaction up to USD 100 thousand per month, this policy affects the dollar to decrease speculation.

“Why let in foreign kok SBI, SBI but not for domestic monetary management, let alone we must also pay interest to foreigners, it is better for society,” he said