Regulatory Alerts2012-06-08
Bank Indonesia Circular Letter No. 14/18/DPM on Fourth Amendment to Open Market Operation Regulations
Bank Indonesia issued Circular Letter No. 14/18/DPM to amend regulations governing Open Market Operations, specifically introducing a transaction mechanism for Term Deposits in foreign currency. The regulation mandates that these deposits be conducted in US Dollars with tenors of 7, 14, or 30 days through an auction mechanism using fixed or variable rate tender methods. It further details the procedures for early redemption, conversion of term deposits into FX Swaps to obtain rupiah liquidity, and the associated settlement obligations and sanctions for non-compliance.
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