Regulatory Alerts2022-07-04
Bank Indonesia Regulation Number 24/7/PBI/2022 on Transactions in Foreign Exchange Market
Bank Indonesia issued Regulation Number 24/7/PBI/2022 to establish a comprehensive regulatory framework for transactions in the foreign exchange market, aiming to ensure liquidity, efficiency, and transparency. The regulation mandates that banks ensure all foreign currency transactions against the rupiah are backed by verifiable underlying transactions and prohibits specific activities such as providing overdrafts for currency trading or lending to non-residents. It further defines permissible transaction types, settlement methods, participant obligations, and establishes supervisory mechanisms with administrative sanctions for non-compliance.
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