Indonesia to cut 3 zeros off the rupiah

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Indonesia rupiah The Indonesian government has announced plans to redenominate its currency and to reduce the number of zeros on the rupiah by three beginning in 2014.

The redenomination aims to simplify payment processes in a national currency upon which many people already ignore the last three zeroes.

Indonesians currently carry 100,000 rupiah banknotes ($10.36), the highest denomination in Asia after Vietnam’s 500,000 dong notes ($25). The nation’s banking assets amounted to 4.029 quadrillion rupiah in October, or 4,029,000,000,000,000 rupiah, central bank data show.

The phasing in of new banknotes will begin in 2014 and will continue until 2016. This means that for a three-year period there will be notes showing both units of measurement that will continue to be legal tender.

“This move will not disrupt payments, inflation and the economy as a whole,” said Perry Warjiyo, executive director for economic research and monetary policy at Bank Indonesia.

“Bank Indonesia and the government will socialise the move to businesses, associations and the entire community starting next year,” he added.

The last two redenominations in Indonesia occurred in 1959, when 1,000 rupiah became 100 rupiah, and again in 1966, when 1,000 rupiah was redenominated as 1 rupiah. Had these changes not taken place, one US dollar, which at current value today is worth 9,654 rupiah, would be valued at 9,654,000,000 rupiah.

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Reading Time: 1 minute

The Indonesian government has announced plans to redenominate its currency and to reduce the number of zeros on the rupiah by three beginning in 2014.

Reading Time: 1 minute

Indonesia rupiah The Indonesian government has announced plans to redenominate its currency and to reduce the number of zeros on the rupiah by three beginning in 2014.

The redenomination aims to simplify payment processes in a national currency upon which many people already ignore the last three zeroes.

Indonesians currently carry 100,000 rupiah banknotes ($10.36), the highest denomination in Asia after Vietnam’s 500,000 dong notes ($25). The nation’s banking assets amounted to 4.029 quadrillion rupiah in October, or 4,029,000,000,000,000 rupiah, central bank data show.

The phasing in of new banknotes will begin in 2014 and will continue until 2016. This means that for a three-year period there will be notes showing both units of measurement that will continue to be legal tender.

“This move will not disrupt payments, inflation and the economy as a whole,” said Perry Warjiyo, executive director for economic research and monetary policy at Bank Indonesia.

“Bank Indonesia and the government will socialise the move to businesses, associations and the entire community starting next year,” he added.

The last two redenominations in Indonesia occurred in 1959, when 1,000 rupiah became 100 rupiah, and again in 1966, when 1,000 rupiah was redenominated as 1 rupiah. Had these changes not taken place, one US dollar, which at current value today is worth 9,654 rupiah, would be valued at 9,654,000,000 rupiah.

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