{"id":11170,"date":"2015-08-18T07:34:09","date_gmt":"2015-08-18T12:34:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11170"},"modified":"2015-08-18T07:34:09","modified_gmt":"2015-08-18T12:34:09","slug":"indonesia-impaled-currency-crashes-to-1998-asian-crisis-low-as-exports-crater","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11170","title":{"rendered":"Indonesia Impaled: Currency Crashes To 1998 Asian Crisis Low As Exports Crater"},"content":{"rendered":"

Indonesia Impaled: Currency Crashes To 1998 Asian Crisis Low As Exports Crater<\/a><\/h3>\n

On Monday\u00a0we laid out<\/a>\u00a0the rather dire road ahead for the world\u2019s emerging economies in the face of China\u2019s entry into the global currency wars. The path ahead is riddled with exported deflation and decreased trade competitiveness for a whole host of emerging economies [and] all of this is set against a backdrop of declining global growth and trade, a trend which many had assumed was merely cyclical, but which in fact may prove to be structural and endemic.”<\/p>\n

Well don\u2019t look now, but\u00a0trade just collapsed for Indonesia\u00a0<\/strong>as exports and imports plunged 19.2% and 28.4% (more than double to consensus estimate), respectively in July.<\/p>\n

Imports of raw materials dove 24%.\u00a0Manufacturing and palm oil exports fell 7.1% and 2.4%, respectively, nearly tripling June\u2019s declines.<\/strong>\u00a0Oil and gas exports fell nearly 8%.<\/p>\n

\"\"<\/a><\/p>\n

Meanwhile, Bank of Indonesia kept its policy rate on hold at 7.5% and indeed the bank looks to be stuck in a dilemma similar to what we described earlier this month when we noted that “EM central bankers are grappling with slumping exports and FX-pass through inflation or, more simply, bankers are caught between a ‘can\u2019t cut to boost the economy’ rock and a ‘can\u2019t hike to tame inflation’ hard place.\u00a0The rupiah, like the Malaysian ringgit, is trading near multi-decade lows and hit its weakest level since August 1998 earlier in the session.<\/strong>\u00a0Depressed commodity prices and slumping demand from China aren\u2019t helping.<\/p>\n

And neither is Beijing’s devaluation of the yuan which means that suddenly, Indonesia has lost export competitiveness to China while anything China imports from Indonesia will now cost more.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Indonesia Impaled: Currency Crashes To 1998 Asian Crisis Low As Exports Crater On Monday\u00a0we laid out\u00a0the rather dire road ahead for the world\u2019s emerging economies in the face of China\u2019s entry into the global currency wars. The path ahead is riddled with exported deflation and decreased trade competitiveness for a whole host of emerging economies […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,951,1099,202,8219,1444,426,805,1031,4318],"class_list":["post-11170","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-currency","tag-currency-devaluation","tag-deflation","tag-emerging-economies","tag-indonesia","tag-inflation","tag-trade","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11170"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11170\/revisions"}],"predecessor-version":[{"id":11171,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11170\/revisions\/11171"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}