Preview

Currency Market - Indonesia

Powerful Essays
Open Document
Open Document
3618 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Currency Market - Indonesia
[pic]

Project Report

On

Currency Market - Indonesia

PT-MBA-2011-2014
International Finance - Group 5

Name Roll Number

1. Mr. Lawrie Dias A012

2. Mr. Vipin Grover A016

3. Ms. Surabhi Dwivedi A014

4. Mr. Ram Mulik A030

5. Dr. Dhawal Patel A033

6. Mr. Datta Sidgiddi A056

Contents

Indonesia – Exchange Rate System 4

1. The fixed rate over 1970 to 1978 4

2. Managed floating exchange rate system since 1978 4

3. And the free floating exchange rate system since August 14, 1999. 4

Regulatory and Institutional Structure 4

1. Ministry of Finance 4

2. Financial Services Authority (OJK) 4

3. Bank Indonesia 5

4. Indonesia Commodities and Derivatives Exchange (ICDX) 5

Currency Exchange/Flow Policy 6

Monetary Policy Framework in Indonesia 6

Monetary Policy Objectives 6

Coverage of Regulation 7

Decision Making Process 8

The Size, Structure and Character of the Currency Market 9

Size of Currency Market 9

Structure of Currency Market 12

Foreign Exchange Trading System from 1989 to present 13

Market Players 13

The Interbank Market and The Retail Market 13

JIBOR Contributors 14

Economic Indicators 15

Mean CPI, Inflation, Interest Rate 15

Balance Of Payments 15

Brief background on Indonesia’s BOP position in last 5 years 16

International Parity Conditions 16

Purchasing Power Parity and Inflation Scenario in Indonesia 16

Interpretation of PPP 19

Big Mac Index 19

Interest Rate Parity 20

Interpretations of Interest Rate Parity 21

International Fisher Effect 21

Outlook on Indonesian Market over a short to medium term 23

Impact on India’s Trade of Goods and Services with Indonesia 24

Bibliography 25

Indonesia – Exchange Rate System

Indonesia, since 1970,
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Eco 372 Team Paper
    • 1490 Words
    • 6 Pages

    Eco 372 Team Paper

    Moffatt, M. (n.d.). A beginner 's guide to exchange rates and the foreign exchange market.…

    • 1490 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Citibank Indonesia Essay By Minischoles1
    • 557 Words
    • 3 Pages

    Citibank Indonesia Essay By Minischoles1

    Below is a free essay on "Citibank Indonesia" from Anti Essays, your source for free research…

    • 557 Words
    • 3 Pages
    Powerful Essays
    Read More
  • Good Essays

    Currency and Thai Baht
    • 1081 Words
    • 5 Pages

    Currency and Thai Baht

    1. How are percentage changes in a currency’s value measured? Illustrate your answer numerically by assuming a change in the Thai baht’s value from a value of $0.022 to $0.026. ANSWER: The percentage change in a currency’s value is measured as follows:…

    • 1081 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Currency Exchange and International Business
    • 696 Words
    • 3 Pages

    Currency Exchange and International Business

    Convert $1.00 U.S. to the currencies of five other countries (you can do this at www.xe.com/cc/). What implications do currency exchange rates hold for setting prices in other countries? How does this affect buying power? Why or Why not? How would this affect selling power?…

    • 696 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Euro Currency Market
    • 2239 Words
    • 9 Pages

    Euro Currency Market

    The money market in which Eurocurrency, currency held in banks outside of the country where it is legal tender, is borrowed and lent by banks in Europe. The Eurocurrency market is utilized by large firms and extremely wealthy individuals who wish to circumvent regulatory requirements, tax laws and interest rate caps that are often present in domestic banking, particularly in the United States.…

    • 2239 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    How Did Korea A Free Floating Exchange Rate System?
    • 724 Words
    • 3 Pages

    How Did Korea A Free Floating Exchange Rate System?

    Under the supervision of the IMF, Korea adopted a free floating exchange rate system. Ever since, the liberalization of the FX market removed ceilings on foreign investment in Korea equities and money markets. This allowed the Korean won to be less exposed to speculative currency attacks. In a managed system, Korea needed vast foreign reserves to keep the value of the won at a certain level. Its depletion of foreign reserves in response to capital flight was what contributed to Korea’s financial collapse in 1997. Yet in a free floating system, the value of a currency would be determined by market demand forces. As the currency, would in theory, display correct values, it would be more immune to currency speculation. However this does not mean that it won’t be affected by market sentiments.…

    • 724 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Global Banknote Market Report: 2012 Edition
    • 376 Words
    • 2 Pages

    Global Banknote Market Report: 2012 Edition

    As the technological environment is swiftly undergoing evolution, companies operating in the healthcare/science/pharmaceutical/therapeutic industry are now scaling new heights. Also, the respective sector’s growth is boosted by the rising number of health related issues emanating from the changing lifestyle and incessantly evolving surroundings. To address the rising demand for better healthcare options and the unmet needs within the some of the underlying segments, related companies are coming up with novel and improved therapies especially in the field of cancer treatment wherein the radiation therapy is gaining quick acceptance.…

    • 376 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Indonesian Economy: Asia Pulp and Paper
    • 2864 Words
    • 82 Pages

    Indonesian Economy: Asia Pulp and Paper

    A short strategy analysis of APP mission , vision and strategy Indonesian Economy Asia Pulp and Paper…

    • 2864 Words
    • 82 Pages
    Good Essays
    Read More
  • Good Essays

    Forex: Foreign Exchange Market
    • 7436 Words
    • 30 Pages

    Forex: Foreign Exchange Market

    The major players in the foreign exchange arena are commercial banks ,investment banks,central banks,trading instituitions ,hedge funds,corporations,high net worth individuals and individual investor .…

    • 7436 Words
    • 30 Pages
    Good Essays
    Read More
  • Best Essays

    BIS Quarterly Report 0712 Carry Trade
    • 3902 Words
    • 28 Pages

    BIS Quarterly Report 0712 Carry Trade

    Jacob Gyntelberg Eli M Remolona +852 2878 7145 jacob.gyntelberg@bis.org +852 2878 7150 eli.remolona@bis.org Risk in carry trades: a look at target currencies in Asia and the Pacific 1 We analyse carry trades involving the Australian dollar, Indonesian rupiah, Indian rupee, New Zealand dollar and Philippine peso as target currencies. We find evidence supporting the view that downside risk is an important feature of such strategies and propose ways of measuring this risk.…

    • 3902 Words
    • 28 Pages
    Best Essays
    Read More
  • Powerful Essays

    Money & Exchange of Rate
    • 7659 Words
    • 31 Pages

    Money & Exchange of Rate

    KEY CONCEPTS: Finance & Markets Before you jump right to the main topic of our project we need to clarify some concepts that will be of great help in understanding the topic, "Money, Interest Rate & Exchange Rate". BONDS MARKETS The international bonds markets is, where firms and governments raise money; are less known than the equity markets but are more influential and important. The price of sobering bond reveals how creditworthy a government is, how its politicizes are regarded and how easy it finds it to raise cash. Definition of a bond, a kind of debt that promises to pay the holder a specified sum at some point in the future, plus some interest over the life of the bond. Interest Rate Interest is the key, the real power lies in the bond interest rate, which is determined by the market and it can be different from the advertised on the bond itself. If investors believe that a government is at risk of default, thereby exist high probability of increasing the inflation. This will cause a double effect, reduces the price of the bond and increases the effective interest rate you pay for it. Economic significance, the more risky it is an asset, investors paid less for it and bigger should be the compensation for holding it. Origins of Bonds The bond market was born in medieval Italy, when often the wealthiest citizens were forced to lend money to the city-states, which were in war often, in exchange for a regular payment of interest. Until the Napoleonic period the bond markets were not truly influential. By then the British government issued various types of bonds, including the "TONTINE" and the most popular "CONSOL". Yield Curve Yield curve,…

    • 7659 Words
    • 31 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Foreign Exchange Management Janata Bank Ltd
    • 19203 Words
    • 77 Pages

    Foreign Exchange Management Janata Bank Ltd

    "Bai-Murabaha” may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods (permissible…

    • 19203 Words
    • 77 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    The Philippine Currency Evolution
    • 751 Words
    • 4 Pages

    The Philippine Currency Evolution

    During the Spanish occupation, when they came here in the Philippines in 1521 they brought with them the first European coin called teston.…

    • 751 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Financial international Markets
    • 961 Words
    • 4 Pages

    Financial international Markets

    T-bills are highly liquid instrument of financial market.Securities can be liquidated when ever the holder wants.…

    • 961 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Overview Fema
    • 5536 Words
    • 23 Pages

    Overview Fema

    Intention was to bring provisions of FERA in line with emerging trends of liberalization so as to remove obstacles in the inward flow of foreign exchange and foreign investment. Accordingly, on June 1, 2000, the Foreign Exchange Management Act, 1999 (FEMA) brought in force to replace the then existing FERA. It is an act to manage the foreign exchange of India as opposed to FERA which was enacted to regulate/control the foreign exchange.…

    • 5536 Words
    • 23 Pages
    Good Essays
    Read More

Related Topics