BI to SOEs: Don't Hesitate to Hedge
17 October 2013 15:48 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) senior deputy governor Mirza Adityaswara urged state-owned enterprises not to hesitate to hedge currency exchange rates. According to Mirza, BI's hedging rule is aimed at providing a legal umbrella for SOEs that are still hesitant to hedge their business transactions out of the notion that an exchange rate difference is a loss to the state.
BI's hedging rule strengthens a previous rule signed by SOE Minister Dahlan Iskan on Sept. 25, which gives SOEs the freedom to hedge the currency rate.BI has also issued similar rules that explain hedging instruments, namely swaps and forwards, as well as the procedures.
Economic observer from the Indonesian Institute of Sciences (LIPI), Agus Eko Nugroho, assessed that BI's hedging rule will have a positive impact on the currency rate, as market players would be convinced that hedging is a normal transaction made in the business market.
On Friday last week, based on BI's middle rate, the rupiah rose 67 points to Rp11,475 per U.S. dollar from Thursday's Rp11.542 per U.S. dollar.
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