The dollar jumps 14,500, Minister Darmin Say Do not think about danger – VIVA

VIVA – Minister for Economic Affairs Darmin Nasution said that the rupiah that hit the lowest level is not considered a danger. Therefore, there is a positive side of the exchange rate for Indonesian exports.

"Do not badume that the exchange rate is still dangerous, there is no danger there, China even deliberately weakens its currency," said Darmin at the Ministry of Finance's office. Economy, Jakarta, Sunday, July 22, 2018.

Darmin proposed to react to the exchange rate of the rupee against the US dollar which continues to weaken. In fact, the exchange rate has pbaded the lowest level since the beginning of this year. On the basis of the JISDOR reference rate of the Indonesian Bank, the rupiah exchange rate was Rp 14,520 per US dollar at the last negotiation on Friday, July 20, 2018.

In China, according to him, the policy Monetary must allow money to continue to weaken, so that exported goods are cheaper to be more competitive. "Once the currency that he continues to weaken, he did not want to intervene, and the countries around him were also weakening," he said.

According to Darmin, many people who do not know how to read about the weakening of the rupee exchange rate so often misinterpret the rupiah. Nevertheless, he continued, the government, including the Bank of Indonesia and the Financial Services Authority (OJK) will not allow the weakening of the rupee exchange rate too far, to through a number of measures and policies taken.

"That does not mean anything baseball until (richard) Rp20 thousand baseball nothing, yes and we will try to weaken not too far," he said.

The former Governor of the Bank of Indonesia continued, the weakening of the rupiah was caused by two things. The first is a trade war between the United States and China. Second, the normalization of monetary policy in developed countries, including the United States.

Four days ago, he said, Fed governor Jerome Powell announced a monetary policy to encourage interest rate increases to increase the interest rate. inflation in the United States. The problem in the United States today is that inflation is too low.

"That means why he wants to raise the interest rate, not only are we starting to trump on Trump.C is the Fed's job of raising the interest rate alone, that's Trump, "he said.