Regulatory Alerts2022-02-25
Regulation on Cross Currency Repurchase Transactions in Rupiah Against Ringgit Between Banks and Bank Indonesia
Bank Indonesia issued this regulation to operationalize the local currency bilateral swap agreement with Bank Negara Malaysia, providing ringgit liquidity to Indonesian banks through cross-currency repurchase agreements. The framework defines eligible participants as Appointed Cross Currency Dealer Banks and mandates the use of sovereign securities as collateral for transactions with a maximum term of twelve months. It establishes detailed procedures for application, settlement, and maturity, ensuring the mechanism supports local currency settlement and financial market stability.
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