!-- Javascript Ad Tag: 6454 -->

Tuesday, December 16, 2014

Foreign Capital Flows in the country Beginning Fly to Russia?

Moscow city
Foreign Capital Flows in the country Beginning Fly to Russia?


Headline - Flow of foreign capital in developing countries, including Indonesia, threatened to fly to the Russian financial market. The increase in benchmark rate by 650 basis points from 10.5 percent to 17.5 percent in Russia, is enough to lure investors to 'play' in the domestic financial market Red Bear.

An indication that at least already appear in the financial markets of Indonesia. Finance Minister Bambang Brodjonegoro revealed, the increase in the benchmark interest rate Russia becoming one of the reasons why the rupiah dropped today.

"When see Russia rate was increased 650 bps, then there must be investors thought, 'if so we move to the portfolio of Russia'," he said, at the office of the Coordinating Ministry for Economic Affairs, Tuesday, December 16, 2014.

Interest debt securities issued by developing countries can degenerate and eventually make the currency in the country weakened. This is already happening today.

"So, this is no influence of Russian policy, and this is already the sixth time Russia should raise its policy rate," he said.

[Read: Overwhelmed weir Dollar, Russia Raise Interest]

However, Bambang admitted advised by the Russian policy. Keeping in economic conditions of the country going down, along with the decline in international oil prices which became one of the country's largest revenue source.

Senior Deputy Governor of Bank Indonesia (BI), Mirza Adityaswara revealed similar things. According to him, the policy pursued by Red Bear country, to dampen the currency depreciation of nearly 50 percent.


"Russia is experiencing considerable pressure, oil prices down low. And for Russia, it is still sangt important oil revenues, in contrast to the premises," said Mirza.

No comments:

Post a Comment