Regulatory Alerts2014-09-17
Bank Indonesia Regulation No. 16/18/PBI/2014 on Amendment to Hedging Transaction Regulations
Bank Indonesia issued Regulation No. 16/18/PBI/2014 to amend the rules governing hedging transactions between banks and domestic parties. The regulation mandates that hedging must be linked to underlying transactions with terms and nominal values that do not exceed those of the underlying assets. It also aligns settlement and sanction procedures with existing foreign exchange and risk management regulations while revoking Circular No. 15/42/DPM.
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