Rupiah Poised for Record Low on Policy Risk, Top Forecaster Says
The Indonesian rupiah is facing the risk of reaching a record low, according to the currency's top forecaster from the previous quarter. The primary concern is the perceived threat to the central bank's independence, which is undermining investor confidence in the currency. Despite Indonesia's economic growth and the central bank's efforts to maintain stability, the lingering uncertainty over the central bank's autonomy is weighing heavily on the rupiah's performance. Investors are wary of the potential policy risks, which could lead to further weakening of the currency. The article highlights the significance of central bank independence in maintaining investor trust and the stability of a country's currency. Any perceived threats to the central bank's autonomy can have a direct impact on the currency's value and the overall investment climate in the country.
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