Inflation Control and Financial Facilities Strategy slide image

Inflation Control and Financial Facilities Strategy

Bank Indonesia Policy Mix: April 2020 Mitigating the risk of COVID-19 transmission • BB BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA Bank Indonesia has agreed a repurchase agreement line (repo line) with the US Federal reserve worth USD60 billion The agreement may be used by Bank Indonesia to fulfil US dollar liquidity if required. The repo line facility for Foreign and International Monetary Authorities (FIMA) has only been extended to a few central banks, thus indicating confidence in Indonesia's economic outlook and the macroeconomic policies implemented. In addition, Bank Indonesia has also established repo line facilities with several other institutions, namely the Bank for International Settlements (BIS), worth USD2.5 billion, the Monetary Authority of Singapore (MAS), USD3 billion, as well as other central banks in the region valued at USD500 million-USD1 billion. The agreements will strengthen Bank Indonesia's second line of defence, encompassing Bilateral Currency Swap Arrangements (BCSA) with several other central banks, namely the People's Bank of China (PBoC), worth CNY200 billion (equivalent to USD30 billion), the Bank of Japan (BOJ), USD22.76 billion, Bank of Korea, KRW10.7 trillion (equivalent to IDR115 trillion), and the Monetary Authority of Singapore (MAS), USD10 billion. 120
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