Indonesian players gauge plan on cutting zeroes from rupiah

According to media reports, Indonesia’s central bank is planning to redenominate the rupiah by cutting three zeroes from the currency in order to simplify payments. The bank stated that the introduction of new currency will not have a negative impact on purchasing power and on prices in the country given the stability of the economic situation of the country.

Following the news, Indonesian players evaluated the central bank’s plan and made comments on the possible impacts. Some of them see this as a harmless move while some are expecting to see some small effects.

A trader commented, “We believe that cutting three zeroes from the rupiah shouldn’t have any impacts as the value of the currency will remain the same.”

A converter said, “About taking three zeroes off from the rupiah; we are not sure how this would impact the economy. Yet, we are not influenced so far.”

Another converter opined, “We think that the removal of three zeroes from the rupiah will have minimal impacts. The move does not plan to take money out off the market, it’s just a replacement.”