The rupiah has dropped 10% to the dollar this year despite four rate hikes; policymakers plan to increase tourism receipts, greater use of biodiesel to stem expenditure on oil imports and come up with strategies relating to imports and exports.
EVEN if emerging markets (EMs) finally climb back onto investors’ radar, it is not a reason to cheer as long as their economic woes are not fixed.
Government and central bank intervention in raising interest rates and implementing other short-term fixes may help for a while, but fundamental weaknesses need to be fixed for long-term resilience.
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