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Indonesia’s currency is spiraling. It’ll have to make sacrifices to save it

Indonesia’s currency is spiraling. It’ll have to make sacrifices to save it

Indonesia’s rupiah has been growing worryingly weak, and the country’s central bank has seen little success after multiple attempts to prop up the currency.

Now, Bank Indonesia said it will meet again on Wednesday — and speculations are rife that the central bank has more tricks up its sleeve.

The rupiah has been one of the worst-hit Asian currencies as investors pull out of the Indonesian stock and bond markets amid rising U.S. Treasury yields and strengthening in the greenback. The falling value of the rupiah could spell trouble for the country’s large foreign currency debt, and the outflows from its bonds are bad news for its government.

The central bank has tried to stem the currency weakness with measures including hiking interest rates and buying sovereign bonds, but the rupiah still depreciated: It fell to 14,202 per U.S. dollar on May 23. That was the weakest in more than two years.