Regulatory Alerts2023-01-28
Bank Indonesia Regulation Number 24/2/PBI/2022 on Transactions Between Banks and Bank Indonesia to Support Local Currency Settlement
Bank Indonesia issued Regulation Number 24/2/PBI/2022 to replace previous swap arrangements and establish a framework for transactions between banks and the central bank to support local currency settlement. The regulation mandates that banks conduct these transactions to meet foreign currency needs for international trade and investment, subject to underlying transaction requirements and specific implementation procedures. It further defines settlement mechanisms, administrative sanctions for non-compliance, and Bank Indonesia's authority to supervise and enforce early termination of transactions.
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