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)

 

 

 

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Aseanplus News

All 26 crew rescued from burning cargo ship off Indonesia's Bengkulu
NCID officer seriously injured in machete attack during drug raid
Police find no explosives at Klang supermarket
Four killed, two injured in exchange of gunfire in Thailand's Narathiwat
Melaka polls: Barisan won't compromise principles in seeking alliances, says Ab Rauf
Eight pilgrims from India's Madhya Pradesh killed, 17 injured as mini bus falls into gorge in Kota district
Man seriously injured in Japan's Akita Prefecture with wife reporting bear attack
No more heartbreak for Zi Yu as she and Genevie make history with first-ever world junior crown
Woman arrested for drink driving after accident in Singapore's Amoy Street; two people taken to hospital
Laos hosts regional exchange on flood forecasting to strengthen disaster preparedness

Others Also Read