Bold Central Bank

A caution from Bank Indonesia to four foreign banks proved effective.

May 25, 2004

TAKING preventive measures now is better than facing difficulties later. This seems to be the principle that Bank Indonesia (BI) is adopting in light of the pressure by the US dollar against the rupiah within the past three weeks. The central bank chose to scream earlier, the moment signs of speculations started to look worrying.

BI Governor Burhanuddin Abdullah started his moves by pointing to four foreign banks, who within a week have reaped at

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