Regulatory Alerts2018-08-21
Regulation of Member of Board of Governors Number 20/18/PADG/2018 on Hedge Swap Transactions to Bank Indonesia
The Member of the Board of Governors of Bank Indonesia issued this regulation to establish the operational framework for hedge swap transactions between commercial banks and the central bank. The document defines eligible underlying transactions, such as offshore loans and direct investments, and mandates specific documentation and eligibility criteria, including a minimum composite rank of 3, for participating banks. It further details the procedural requirements for submitting hedging contracts, executing transactions within designated windows, and managing the two-leg settlement process to support rupiah rate stability and foreign reserve strengthening.
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