In Reply to: ok posted by petrov on Wednesday, 17. May 2006 at 20:08 Bali Time:
or any other currency, at least that is my understanding of why the IDR is fluctuating a lot. The Indonesian Central Bank believes in running a free economy. Since Dec 2005 IDR has greatly appreciated. Then this week it has lost up to 5% (probably against USD, and also against AUD as it has been noted) of its value. Last night's Indo news was reporting that it had made modest recovery. A lot of people forget that one rupiah does not have the same value as one Australian dollar and when they see that IDR is now 7005 to AUD and yesterday it was 6800 they conclude that the rupiah has gone up in value. Economics is hard. I know because I failed it. Thomas