Regulatory Alerts2022-12-29
Regulation on Implementing Sharia Hedge Swap Transactions to Bank Indonesia
Bank Indonesia issued Regulation Number 24/22/PADG/2022 to establish implementing rules for Sharia Hedge Swap Transactions, a hedging instrument designed to maintain rupiah exchange rate stability. The regulation defines eligible commercial banks, mandates specific underlying transactions, and outlines the procedural requirements for applying, confirming, and settling these complex swap agreements. It further details operational constraints including transaction windows, maximum terms, and settlement obligations to ensure compliance with Sharia principles and monetary control objectives.
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