Italy Crisis Affect Emerging Market

By administrator | October 5, 2018 | Economy.
Italy Crisis Affect

Illustration: Italy Crisis

Italy Crisis Affect Emerging Market. The exchanges rate of the rupiah against the US dollar again weakened at the close of trade Thursday (4/10), post crisis that happened in Italy into a new negative sentiment to rupiah. Previously, rupiah gets pressure from negative sentiment rises in the Fed rate and trade war. Italy made the Euro exchange rate weakened and the US dollar more solid.

The Fed Finally Raise Rate by 25 Bps

Inflation and Fed’s Meting to  Dictate Market

BI Rate Increases have yet an Impact on Mortgage Interest

Pressure Eases as the Fed Delayed Rate Hike

Federal Finance Hit Primary Market with 2 New Bond Series

Investors shifted their funds to assets came to dominate US dollar, creating demand for the US dollar increased, and investors are relatively avoided emerging market countries currency. As information, the exchanges rate of rupiah in the spot market weakened 0.69% to as low as IDR15,179/USD on Thursday (4/10). As for the exchanges rate of rupiah in Bank Indonesia weakened 0.29% to as low as IDR15,133/USD.

Three Factors Encouraging The Strengthening Rupiah Next Year

Asian Market Selling Action

Investor on the Sideline; Foreign Exchange Reserve in May worth USD124.95Bn

High Interest a Threat to Bank Stock in MSCI Emerging Markets

Bank Negara Indonesia became a Partner at the IMF-World Bank’s Annual Meeting

The Italy Government’s budget deficit makes the political crisis in the countries, and the markets participants do not predict the crises will increase its escalation. Previously, the volatility of the emerging market currencies is dominated by negative sentiment Fed Funds Rate and a trade war.

Until August, State Budget Deficit of IDR150Trn

Current Account Deficit Dropped to 2% in the Year 2019

State Budget Deficit Estimated Shrink to 2.12%

Indonesia’s Baa3 Rating Affirmed: Moody’s Reviews Pertamina and Energi Mega Reviewed for Downgrade

Bank Permata Bond Issuance

The markets participants saw that the US dollar is still safe and have positive prospects, both in the short and long-term. Meanwhile, there has been no positive sentiment in the near future for rupiah, making the rupiah is expected to move sideways with a tendency to weaken.

Rupiah Touch Level IDR15,000/USD

Non Tax Revenue Reaches 64% of 2018 Target in 1H18

Businessmen Refuse Tax on Retained Earnings Policy

Saratoga’s USD100Mn of Investment Capex

Unilever Indonesia’s Performance in 1H2018

On the other hand, the Indonesia Government has already committed to lowering its State Budget (APBN). One of them i.e. increase the policy rate income tax (PPh) of 1,147 import goods, which is the imports of consumer goods and manufactured within the countries. Likewise, with policies on fuel (BBM) which is the largest import component, with the hopes that the applications of a 20% bio diesel (B-20) can reduce the deficit.

No Import Tax Rate Increase affect the Low Income Society

Import Taxes Rate Increase Push the Net Export

Year End Tax Depends on Government Spending

Consumer Goods Support Fajar Surya Business

Unilever Indonesia Entered the Chili Sauce Business


October 2021

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