2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

Principles of Domestic Non Deliverable Forward (DNDF) Transaction Bank can perform DNDF Transactions as follows: Transaction between: III 1. Must have Underlying Transactions: Including all following activities: a. b. C. Trade of goods and services Investments, loans, capital, and other investements. Banks credit or financing in foreign currencies (specifically for transactions between bank and customers) - Bank Customer III Bank Foreign Party - Can only be performed to hedge rupiah exchange rate risk. X Excluding following activities: Bank Indonesia certificates; Placement of funds with bank; Unwithdrawn credit facilities; a. b. C. d. e. f. Intercompany loan g. Money changer activities. Documents of foreign currencies sales againts rupiah; Money transfer by fund transfer companies 2. Nominal of DNDF Transactions ≤ Nominal of Underlying Transactions Source: Bank Indonesia III III Bank - Bank 3. Tenor of DNDF Transactions ≤ Tenor of Underlying Transactions 162
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