Rupiah Banknotes Could Lose a Couple of Zeros: Bank Indonesia
Jakarta Globe | August 03, 2010
Bank Indonesia is investigating a proposal to cut a couple of zeros off Indonesian rupiah denominations for the sake of simplicity. (Reuters Photo) Related articles
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389184Just like Zimbabwe..............
Crap, now Indonesia will lose millions of millionaires and billionaires.
Seriously though, good move. It's more difficult to calculate exchange rates with so many zeros. Also those zeros bloats databases (accounting, banks etc.), invoices, statements and are more prone to calculation mistakes.
Hmmm. Cashless society...similar habits in the US. Without credits or bank loans, no one is able to live comfortably in the US therefore I don't see any different than the way Indonesians live way out of their means.
10 years to implement the change? hey it takes time to change all the dirty money sleeping in bank vaults.
Oh...I missed that one, a golden statement:"...increasing efficiency in the move toward a cashless society [in Indonesia]"
...sure, folks are going to pay their Nasi Goreng at the food stall with Visa or Mastercard. That already now a huge percentage of Indonesian's society is cashless (and has therefore no bank accounts because they are so poor) is, it seems, just the start!
Jakarta. That feeling of becoming instant millionaires tourists experience in Indonesia when they cash in $100 for rupiah may become a thing of the past — eventually.
Bank Indonesia confirmed on Tuesday that it was studying lopping off a couple of zeros from the currency to make transactions more efficient.
The bank, however, appears to be in no rush to implement what many would agree was a long-overdue idea.
Darmin Nasution, the central bank governor, told journalists that a study of the proposal was expected to be completed by the end of the year and that the entire process would take about 10 years to fully implement.
He said the redenomination of the rupiah would have a number of benefits, including reducing inflation and increasing efficiency in the move toward a cashless society.
The redenomination process would need a stable economy with low inflation, tight fiscal discipline and strong political will, he said.
Darmin said he hoped the House of Representatives would include redenomination in its ongoing discussions of the currency bill.
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