Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1098)	1/18/1998 6:45:00 PM
From: Rational	Read Replies (2) \| Respond to of 9980

Zeev, I have read news articles suggesting that Rp is heavily shorted. While this is believable by me, I do not know the extent of short-selling. After Indonesia closed 16 banks (to comply with the IMF requirements), many Indonesians panicked and withdrew their Rp from even the healthy banks and converted Rp into US$; this is the currency-run that even the IMF confidential memo has acknowledged to be the cause for the precipitous fall in Rp value from 1/2400 to 1/10000. This crisis could have been alleviated had there been a Kim DJ taking over Indonesian leadership. Suharto's reassertion of his leadership is being received with mixed feelings. This is my understanding of a really messy scenario. Sankar PS: Many SE Asian firms have end of March as their year-end and so they may like to wait till March for short-covering of Rp.