Beware of Government Developed Countries Currency War

Jakarta (ANTARA News) - The government will be wary of war currency (currency wars) who performed the developed countries, in order to increase its exports, because it can disrupt the stability of world economy.
`This is more of a discussion in the major countries and we consider (and) maintain order not to impact the world's influence in Indonesia is that we do not expect,` said Finance Minister Agustin Martowardojo when met at the Parliament Building, on Wednesday.

The minister said the government understands that in some developed countries felt Yuan exchange rate weakened and make the economy more difficult, but China is also unable to immediately strengthen its currency.

`But we also understand that China can not directly strengthen the` currency `her. Because they've done and most of the global economy is still healthy,` he said.

While the Chinese central bank's decision to raise interest rates at 0.25 percent, so now deposit rates over periods of one year to 2.5 percent, Finance Minister says it is not too worrying.

`It's just a little upheavals. But not too surprising. Now it BI already have a` policy `to be on-hold for a month,` he said.

He said the owner of the obligation of Bank Indonesia Certificates (SBI) to hold the portfolio for at least one month as part of a package of measures strengthening monetary management and development of financial markets, would be sufficient.

`That is sufficient, while quite adequate but it later if deemed necessary, and we are wary of inflation. I hope inflation, liquidity control and we monitor on a regular basis,` said the minister.

By : Agus Martowardojo (minister)
Source : Antara