Regulatory Alerts2014-07-24
Bank Indonesia Regulation Number 16/12/PBI/2014 Concerning Sharia Monetary Operations
Bank Indonesia issued Regulation Number 16/12/PBI/2014 to establish the legal framework for conducting monetary control under sharia principles to support Rupiah value stability. The regulation defines Sharia Monetary Operations, including Sharia Open Market Operations and Standing Facilities, which utilize instruments such as Sharia Bank Indonesia Certificates and foreign currency term deposits to manage sharia bank liquidity. It further specifies participant requirements, transaction mechanisms, and sanctions for void transactions to ensure the effectiveness and integrity of sharia monetary operations.
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