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Rupiah Weak but Economy Strong |
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June 13, 2000
JAKARTA, JUNE 12 (AP) - Indonesia's senior economics minister Kwik Kian Gie said Monday the current weakness of the currency, the rupiah, is "illogical" and doesn't reflect improvement across the economy.
"All macroeconomic and monetary aggregates are showing positive and encouraging development," he told reporters. "I don't understand why the rupiah remains weak." He said the important manufacturing sector has picked up as shown by a 21 percent increase in imports of capital goods between January and March compared with the same period a year ago.
The rupiah was trading at 8,655 to the U.S. dollar Monday, much weaker than the exchange rate of 7,000 rupiah to the dollar used to base the government's current budget. Analysts have blamed rising political uncertainty for the plight of the currency. The International Monetary Fund has also complained that Indonesia's government has been inconsistent in its push for sorely needed reforms.
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