Regulatory Alerts2014-09-17
Bank Indonesia Regulation Number 16/19/PBI/2014 on Amendment to Hedge Swap Transactions Regulation
Bank Indonesia issued Regulation Number 16/19/PBI/2014 to amend PBI No. 15/17/PBI/2013 regarding hedge swap transactions with the central bank. The regulation expands the scope of underlying transactions for banks to include declared business funds and establishes specific rules for extending hedging contracts and hedge swap transactions, including netting settlement options. It also defines sanctions for violations, such as written warnings and financial penalties, to ensure compliance and deepen the domestic foreign exchange market.
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