The US dollar is strengthening against all currencies, and so, all currencies are depreciating. In other developing countries, the depreciation has been higher.Jakarta (ANTARA News) - Bank Indonesia Governor Agus Martowardojo assured here on Friday that there was no need to worry about the current rupiah depreciation as it was the direct outcome of the strengthening of the US dollar.
"The US dollar is strengthening against all currencies, and so, all currencies are depreciating. In other developing countries, the depreciation has been higher," he pointed out.
In this regard, he is of the viewpoint that Brazil, which has so far often been viewed as the worlds main developing country, is the worst affected.
Brazilian Real depreciated up to 12 percent in 2014 against the US dollar while its year-to-date depreciation has reached 17 percent.
"In 2014, the depreciation of the rupiah against the US dollar reached 1.8 percent, and its year-to-date depreciation has reached around six percent. In comparison, our situation is not too bad," he emphasized
Agus noted that in general, the US dollar is strengthening, and the Fed could possibly increase its interest rate in June this year and next year.
The Fed plans to raise the interest rate to around 0.5 to 1.0 percent in June this year and to 2.5 percent in 2016.
"We must be better prepared to tackle the condition. The government continues to strive to maintain monetary stability," he stated.
Coordinating Minister for Economic Affairs Sofyan Djalil noted that the current depreciation of the rupiah against the US dollar was still normal.
"It is not a problem because the US economy at present is very good. What has been affected is not only the rupiah but also all other currencies," he remarked on Tuesday (March 10).
He pointed out that only the Swiss Franc has appreciated against the US dollar.(*)
Editor: Heru Purwanto
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