Regulatory Alerts2020-03-19
Bank Indonesia Regulation No. 22/2/PBI/2020 on the Second Amendment to Bank Indonesia Regulation Number 20/10/PBI/2018 on Domestic Non-Deliverable Forward Transactions
Bank Indonesia issued Regulation No. 22/2/PBI/2020 to expand the underlying transactions permitted for Domestic Non-Deliverable Forward (DNDF) contracts. The amendment allows foreign investors to utilize their rupiah accounts, including savings and investment deposits, as valid underlying transactions for hedging rupiah exposure. This measure aims to provide flexibility for foreign investors during market instability by offering alternative hedging mechanisms beyond traditional SBN and stock positions.
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