Redenomination Of The Indonesian Rupiah In Progress

Redenomination Of The Indonesian Rupiah In Progress

Bank Indonesia has prepared a draft bill on the redenomination of the Indonesian Rupiah (Draft Bill). The Draft Bill is aiming to improve the economic efficiency and to create smoother commercial transactions. The Draft Bill suggests to remove the final 3 digits of the current Rupiah. By removing the final three digits, the use of the Rupiah would be simplified, however the value of the Rupiah would remain the same.

Circulation Procedures of the New Indonesian Rupiah

The circulation of the new Rupiah will consist of two phases:

  1. The First Phase (January 1, 2020 – December 31, 2024):
    1. Bank Indonesia will issue and circulate the physical currency with the sign “new” incorporated onto the body of the money (First New Money).
    2. The Old Rupiah can still be used as payment method, until its revocation on December 31, 2024
    3. The Old Rupiah can still be exchanged at Bank Indonesia until December 31, 2034
  2. The Second Phase (January 1, 2025 – December 31, 2028)
    1. Bank Indonesia will issue and circulate the physical currency, without the sign “new” incorporated onto be body of the currency
    2. The First New Money will be valid until its revocation on December 31, 2028
    3. The First New Money can be exchanged at Bank Indonesia until December 31, 2038

Mandatory Implementation Measures

The Draft Bill requires both businesses and Individuals to adhere to the following obligations:

  1. Prices of goods and services must mention both the pre-existing and new Rupiah price during the period from June 1, 2019 until January 1, 2023. This obligation does not apply to micro level businesses)
  2. The value of goods and services must remain the same when converting prices from the old Rupiah price to the new Rupiah price. Value rounding of the new prices is however allowed
  3. The value of the Rupiah in documents must be adjusted to the new Rupiah value.

Failure to comply with the above obligations may lead to fines up to IDR 200 million (old value) and/or an imprisonment up to three months.

Technical Analysis

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 13,358.09.

The projected lower bound is: 13,281.91.

The projected closing price is: 13,320.00.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 26 white candles and 16 black candles for a net of 10 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 43.4783. This is not an overbought or oversold reading. The last signal was a buy 13 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.77. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 18 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -22. This is not a topping or bottoming area. The last signal was a buy 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 16 period(s) ago.

Rex Takasugi – TD Profile

FOREX IDR= closed up 5.000 at 13,320.000. Volume was 27% below average (neutral) and Bollinger Bands were 14% narrower than normal.

Open             High             Low               Close             Volume
13,318.000  13,321.000   13,315.000  13,320.000   76

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period    50-period    200-period
Close:                       13,323.30   13,324.06    13,335.97
Volatility:                1                    2                    4
Volume:                   114               98                  105

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX IDR= is currently 0.1% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of IDR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on IDR= and have had this outlook for the last 11 periods.

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Ivy Heffernan

My name is Ivy Heffernan, and I am interested in a wide range of professions. Economics and politics at the age of 17 is easy when your father has a Ph.D in economics, i have been taught to put together technical analyst and stay up to date with the changing markets as well as what is happening in the political world. Marketing: This one comes as quite a surprise. As I never really knew my true potential for it. It began when I offered to help someone once with their seo, marketing and Web design for free. I'm only 16 so I knew no one would pay me for something I 'claimed' to be good at. Although thanks to analytic reports, it showed that from the seo I was doing the website got more than double its daily views. On top of that the owner was more than happy with the Web design and for marketing. Well for someone who only started a month ago, getting 10+ people a week I'd say is pretty good. Summary: I think being a well rounded individual on all topics is the most important thing to everyone, with the changing economies it's good to know that no matter what life throws at you, and no matter what job you are given, you'll always be capable.

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