Rupiah exchange rate of Bank Indonesia and the World Economic Crisis Effects

Bank Indonesia rupiah exchange rate is very influential on macro economic growth of Indonesia. Nowadays, with the economic crisis in several European countries plus the conflict between North Korea and South Korea, inevitably affect the rupiah.

World Economic Crisis

1. Korean Conflict
Korean conflict may not be up to unduly influence the state of the economy of Indonesia in general. However, the rupiah has started swayed few points. 32 points decline has become an indicator that the impact of conflict on the Korean Peninsula is not good for the rupiah.

South Korea's position is strategic enough in world exports of Indonesia are affecting the movement of the rupiah. Please note that apart from America, Indonesia trade surplus second is South Korea.

If the two Koreas are truly at war and will take a long time, it will automatically affect the economic situation of both countries. When South Korea's economic situation tertanggu, Indonesia exports certainly disturbed.

Domino effect of the disruption of Indonesia's exports to South Korea's economy is the disruption of the market participants directly related to South Korea. It is hoped this disorder would not be very severe.

The situation would be very annoying when conflict or economic decline in countries that are closely hubungannnya with Indonesia's economy, like China, Japan and the United States.

The market participants will buy U.S. dollars on a large scale. This is understandable. Securing investment in the U.S. dollar is still considered the best security precautions.

Actually, the decline in the rupiah did not need to be taken blindly. Bank Indonesia will desperately to maintain the stability of the rupiah. Bank Indonesia as the guardian or keeper of the Indonesian economy will not put up with the collapse of the rupiah.

2. European Economic Crisis
The crisis that hit several countries in Europe might just affect the euro in world financial markets. Currently, the dollar regained some strength. Can predict what will be done by the business in the region and the world, they bought dollars in large quantities.

The action was reasonable for the continuity of their business lives. A stable rupiah exchange rate will greatly affect the macro-economic situation of Indonesia. Bank Indonesia is quite beautiful in maintaining the stability of the rupiah in recent months.

However, amid the world economic recovery, the Korean peninsula conflict and economic crisis in Europe, inevitably, the central bank to work harder to keep the rupiah. BI is not uncommon to get into the market to secure the rupiah.

Apparently, the American economic deficit that could make the euro gallant figure perched on Rp15.000, 00, now no longer have the blood. May the world economy quickly stabilized so that the good effects will be felt by Indonesia.