Bank Indonesia Launches Renminbi Hedge Swap Transactions
5 December 2017 14:28 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) has launched hedge swap transaction service for Offshore Chinese Renminbi (CNH) Starting Wednesday, December 6.
“Additional foreign currency for hedge swap transactions will offer more diverse sources of financing,” Bank Indonesia spokesman Agusman said yesterday in Jakarta.
The central bank’s decision is expected to boost investment and international trade. “Hedge swap transactions will hopefully help improve liquidity management and maintain the rupiah stability,” Agusman said.
Before renminbi, the central bank earlier rolled out hedge swap transactions for Yen and Euro on July 12 and 25 October, respectively. The transaction window of non-dollar currencies is opened once a week every Wednesday at 2 to 4 pm.
Banks may apply hedge swap transactions to Bank Indonesia for the renminbi during the said window with a minimum amount of 10 million CNH and every additional 1 million CNH with available tenors of three and six months.
The application may be filed by stating the underlying transactions.
ANTARA
