Regulatory Alerts2021-08-02
Regulation on Settlement for Bilateral Transactions Between Indonesia and Malaysia Using Rupiah and Ringgit Through Bank
Bank Indonesia issued this regulation to establish a framework for settling bilateral transactions between Indonesia and Malaysia using local currencies through appointed banks. The document defines criteria for appointing banks as cross-currency dealers and mandates the opening of special purpose non-resident accounts to facilitate these settlements. It further regulates financial activities, including balance limits, investment rules, and specific transaction types such as swaps and financing to ensure compliance with underlying economic activities.
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