Imported beef prices are expected to climb even higher next month. The Indonesian rupiah's drop against the U.S. dollar currently means as much as 30-35 percent reduction in consumer purchasing power and higher interest rates and inflation. He estimates that Indonesia will suffer the crisis for two or three years. The hotel food and beverage businesses have also slowed. Importers are stocking less as they are experiencing credit problems.
Banks are reluctant, or are unable, to issue letters of credit for imported goods.
Each country's situation is unique and each has different needs and prospects for recovery, but stable currency is needed for viable long-term markets. The arsenal of tools needed to help our trading partners in Asia resolve their crises must be fully utilized. These tools include developing and putting into place sound monetary practices which, when coupled with credit guarantees and programs like the USDA export credit guarantee programs as well as the IMF assistance plans without further devaluations, should stabilize these economies. IMF programs can be successful . These are not charitable bail-out programs.