"Cypriot banks will still be closed until Thursday."Jakarta (ANTARA News) - The Indonesian currency rupiah fell again in value against the US dollar on worries about European financial crisis.
The currency lost 4 points to close at 9,725 per dollar on Wednesday from the level of 9,721 earlier.
Investors still are worried about financial uncertainty in Europe triggered by new turbulence in Cyprus,Trust Securities` analyst Reza Priyambada said.
The international rating agency Fitch Rating has put Cyprus in the area of negative outlook as its banking system could ruin its economy, Reza said.
"Cypriot banks will still be closed until Thursday. When the bank industry resume operation the government is expected to tighten control on banks to prevent capital flights," he said.
Big depositors could reduce bank capital in that country by 40 percent as a result of the conditions set for bailout to be received by Cyprus, he added.
The Cyprus government has agreed to slap tax on deposits, a policy feared to trigger run on bank.
He said market players hoped that the government of Cyprus could control and prevent capital flight.
(Uu.H-ASG/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2013
