Swap Hedge Transactions into Euros This Week Opened

INDUSTRY.co.id - Jakarta - Bank Indonesia opened the Swap Hedging Transaction to Bank Indonesia in non US dollar denominated currency for Euro (EUR), starting October 25, 2017.

Previously, Bank Indonesia has opened the Swap Hedging Transaction to Bank Indonesia in non-US dollar denominated currency for the Yen (JPY) on July 12, 2017.

"The addition of foreign currency types used in the Swap Hedging Transactions to Bank Indonesia is conducted among others to encourage more diverse sources of financing for national economic activities," said Head of Communication Department of Bank Indonesia Agusman d Jakarta, Monday (23/10/2017).

According to him, Window time Transaction Swap Hedging to Bank Indonesia in non-USD currency is opened once a week, i.e. every Wednesday at 14:00 to 16:00 pm. The Bank may apply for a Swap Hedging Transaction to Bank Indonesia for the EUR currency in that window time with a minimum nominal submission of EUR 1,000,000 (one million Euro) with a multiple of EUR 100,000 (one hundred thousand Euro) and tenure available for 3 (three) and 6 (six) months.

He continued the submission of such transactions can be done by the bank by submitting the basic needs or underlying transactions. The regulation of underlying transactions has been set forth in Bank Indonesia Regulation No.18 / 8/2016 on Third Amendment to Bank Indonesia Regulation Number 15/17 / PBI / 2013 concerning Swap Hedging Transactions to Bank Indonesia.

"Through the policy of Bank Indonesia is expected to support diversified international investment and trade activities in various currencies. In addition, the transaction is expected to help manage liquidity and maintain the stability of the rupiah," he said.