Rupiah Weakens Past 15,000 per Dollar for First Time in 20 Years

The video discusses the impact of the 1997 financial crisis on Indonesia's Rupiah and the ongoing challenges faced by emerging markets. It highlights the benefits of floating exchange rates and the dynamics of market behavior. The discussion extends to contagion risks in emerging markets, influenced by factors like Fed policy, strong dollar, and high oil prices. The video also touches on currency cross rates and their global implications, emphasizing a dollar-based perspective in East Asian and emerging markets.

What was one of the benefits of floating exchange rates mentioned in the context of the 1997 crisis?

• They avoid the bursting of economic 'dams'.

• They allow for more predictable currency movements.

• They ensure continuous economic growth.

• They prevent currency devaluation.

What is a key challenge for Indonesia's economy as discussed in the video?

• Reducing export tariffs

• Increasing oil prices

• Rebuilding after exploiting fiscal space

• Strengthening the rupiah

Which factor is NOT mentioned as driving emerging market problems?

• Low interest rates

• Strong dollar

• Fed policy

• High oil prices

What is the primary currency focus in East Asian and emerging markets according to the video?

• Yen

• Euro

• Dollar

• Renminbi

Which countries are mentioned as potential sources of contagion in emerging markets?

• South Africa and Nigeria

• Venezuela and Turkey

• Russia and Ukraine

• Brazil and Argentina