Storage Terms Funds In Forex Tightened

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JAKARTA: tighten Policy in terms of storing funds foreign exchange will suppress the banking liquidity even if only for a moment. However the policy that positively impact over the long term for the exchange rate.

Chief Economist of PT Bank Mandiri TBk Destry Damayanti said it wanted to assert that the purchase of foreign currency to pay for really real need, not for speculative.

“In this case the purchase of foreign exchange deposits in banks with underlying may contain speculative elements, because if the currency is expected to be strengthened then the depositors want to precisely position the long currency in hopes of getting it gains from changes in exchange rates,” he said to the business, mala mini.

His opinion, for banking in the short term it can reduce the liquidity of the Forex savings, but in the medium term it should be will drive the Forex market more stable.

Bank Indonesia to tighten the terms keep funds in foreign exchange in order to counteract the spekluasi transaction to the rupiah currency. Provisions was published in line with the increase in deposits in foreign currency denominations.

Rules that are laid out in Circular No. 14/11/DPM about changing up the Circulars of Bank Indonesia No. 10/42/DPD regarding the purchase of foreign currencies Against the Rupiah to banks. Provision was in force since March 21, 2012.

Rules that are laid out in Circular No. 14/11/DPM about changing up the Circulars of Bank Indonesia No. 10/42/DPD regarding the purchase of foreign currencies Against the Rupiah to banks. Provision was in force since March 21, 2012.

In the provision were deleted on the utilization of underlying ‘ placement of the clause stored in Forex ‘ above US $ 100,000 per month in order to suppress the Forex purchase transaction for the purpose of speculation against the rupiah.

However, it does not mean the customer is prohibited from making purchases of foreign exchange to rupiah deposits placed in the Forex. If the purchase transaction currency against the dollar more than US $ 100,000 per month, then the customer is obliged to have an underlying as set forth in the provisions.

A number of the criteria underlying the transaction, such as imports of goods and services, payment services, debt service payments in foreign exchange, payment for the purchase of overseas assets, business activities of foreign exchange traders who have permission from nonbank BI and business activities travel agencies.

Payment services such as school fees abroad, the costs of treatment abroad, overseas travel expenses for the purposes of Hajj, the journey of worship/religious tourism or tourism, payment for use of the services of foreign consultants and payments that are related to the use of foreign labor in Indonesia.

Bank Indonesia Bureau Chief Publicist Difi a. Johansyah says a provision barring foreign currency savings without underlying it because there are indications that increased stash denomination since 2008.

“The ease of fulfilling the underlying dollar amount. Not meet the underlying truth, so the purchase of Foreign Exchange increased to be stored above the US $ 100,000. But, now there should be provided, “he said. 

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