Indonesia's central bank clarifies new rule on foreign currency transactions


JAKARTA (Reuters): Indonesia's central bank has announced new rules designed to counter speculative trading in the rupiah, and later issued a statement clarifying one of the measures, which take effect next month.

Here are some details:

* Bank Indonesia said purchases of foreign currency against the rupiah higher than $50,000 per party, per month, would be permitted if accompanied by supporting documentation showing the transaction is based on genuine need rather than speculation.

* Earlier, at a press conference, BI had said the cash threshold for FX purchases was being reduced to $50,000 from $100,000.

* "This policy was formulated to maintain the stability of the rupiah exchange rate and ensure that the dynamics of the domestic foreign exchange market continue to operate in a healthy and efficient manner," BI spokesperson Ramdan Denny Prakoso said in the statement.

* Measures on non-deliverable forwards and swaps remain as outlined at Tuesday's press conference.

* The threshold for selling domestic non-deliverable forward transactions will be increased from $5 million per transaction to $10 million per transaction.

* The threshold for buying and selling swap transactions will be increased from $5 million to $10 million per transaction. (Reporting by Stefanno Sulaiman, Writing by Ananda Teresia)

 

 

 

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