Weakening IDR

[pantaiema]

People often mention that the IDR exchange rate fluctuates, up and down against major currencies. While that’s true in the short term, over the long run, the trend is clear it has been consistently upward. Just look at historical data on this graph.

Then there's the elephant in the room: the IDR Re-denomination. No one knows when it will happen, but eventually, someone will have to pull the trigger. Broadly speaking, this could put significant pressure on the currency and potentially lead to hyperinflation, especially for a country which has not been backed up by a solid plan and sufficient resources to mitigate this risk..

View attachment 4788

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It is the same pattern for EUR/IDR, GBP/IDR, AUD/IDR trending upward

 

[Helpful Herbert]

The IDR has been weakening again recently. Now it just hit 16850/$, can't be too long before it hits 17,000.
The main reasons seem to be rising Indonesian inflation levels, and a much lower tax take than expected last year.